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§ 7-209. Method to value concurrent absolute and less than absolute interests

West's Annotated Code of MarylandTax-General

West's Annotated Code of Maryland
Tax-General (Refs & Annos)
Title 7. Death Taxes (Refs & Annos)
Subtitle 2. Inheritance Tax (Refs & Annos)
Part II. Valuation of Property that Passes from Decedent (Refs & Annos)
MD Code, Tax - General, § 7-209
§ 7-209. Method to value concurrent absolute and less than absolute interests
Currentness
Concurrent absolute interest held by decedent as joint tenant
(a) Except as otherwise provided by an instrument that creates a joint tenancy or by law, if, before death, a decedent had an absolute interest in property as a joint tenant, the value of the interest in the property that passes from the decedent is determined by dividing the value of the entire property by the number of joint tenants, including the decedent.
Concurrent absolute interest held by decedent as joint tenants
(b) Except as otherwise provided by an instrument that creates a joint tenancy or law, if an absolute interest in property passes from a decedent to 2 or more persons as joint tenants, the value of the interest that passes to each joint tenant is determined by dividing the value of the absolute interest in the property by the number of joint tenants to whom the absolute interest in the property passes.
Concurrent absolute interest that passes to tenants by the entireties
(c)(1) If an absolute interest in property passes from a decedent to 2 or more persons as tenants by the entireties:
(i) the value of the interest that passes to each tenant is determined by dividing the value of the entire value of the absolute interest in the property by the number of tenants to whom the absolute interest in the property passes; and
(ii) the tenants by the entireties are jointly and severally liable for the entire inheritance tax.
(2) When property passes from a decedent to a husband and wife as tenants by the entireties and only 1 spouse is entitled to the exemption under § 7-203(b) of this subtitle, the exemption applies to 50% of the value of the property, and the inheritance tax applies to the other 50%.
Sole interest less than absolute
(d)(1) A sole interest less than absolute shall be valued in accordance with the applicable regulations of the Internal Revenue Code that relate to the federal estate tax.
(2) If the sole interest less than absolute depends on, or is measured by, the life of an individual whose life expectancy is shown to be less than average for the individual's age because of poor health, the value of the sole interest less than absolute may be adjusted.
Concurrent interest less than absolute
(e) If a less than absolute interest in property passes from the decedent to 2 or more persons concurrently, the value of the interest in the property that passes to each person is determined in accordance with the applicable regulations of the Internal Revenue Code that relate to the federal estate tax.

Credits

Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 2001, c. 366, § 1, eff. July 1, 2001.
Formerly Art. 81, §§ 151, 160.
MD Code, Tax - General, § 7-209, MD TAX GENERAL § 7-209
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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