Transfers of property by decedent to surviving spouse; qualifying
income interest for life; election
Sec. 7. (a) Each property interest which a decedent transfers to his
surviving spouse is exempt from the inheritance tax imposed as a
result of his death.
(b) For the purpose of subsection (a), "property interest which a
decedent transfers to his surviving spouse" includes a property
interest from which the surviving spouse is entitled for life to income
or payments and which otherwise qualifies for deduction from the
gross estate of the decedent under Section 2056(b)(5) or 2056(b)(6)
of the Internal Revenue Code.
(c) The personal representative of the decedent's estate or the
trustee or transferee of property transferred by the decedent may, for
the purpose of the exemption established by subsection (a), elect to
treat property passing from the decedent in which the surviving
spouse has a qualifying income interest for life as a property interest
which a decedent transfers to his surviving spouse. For purposes of
this section, "qualifying income interest for life" means a qualifying
income interest for life (as defined in Section 2056(b)(7) of the
Internal Revenue Code).
(d) The election referred to in subsection (c) shall be made in
writing and shall be attached to the inheritance tax return, if one is
required to be filed. The election, once made, is irrevocable.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.3; Acts 1982, P.L.55, SEC.2; P.L.2-1987, SEC.25.
Last modified: May 28, 2006