2009 Kansas Code
Chapter 79 TAXATION
Article 15 DEATH TAXES
79-15,219. Same; deductions from gross estate; funeral expenses, administration expenses, claims against the estate and unpaid mortgages on or other indebtedness in respect of certain property; conditions and limitations.

79-15,219

Chapter 79.--TAXATION Article 15.--DEATH TAXES

      79-15,219.   Same; deductions from gross estate; funeral expenses, administration expenses, claims against the estate and unpaid mortgages on or other indebtedness in respect of certain property; conditions and limitations. (a) For purposes of the tax imposed by K.S.A. 2009 Supp. 79-15,203, and amendments thereto, the value of the taxable estate shall be determined by deducting from the gross estate such amounts as are allowable by the laws of the jurisdiction, whether within or without the state of Kansas, under which the estate is being administered for:

      (1)   Funeral expenses;

      (2)   administration expenses;

      (3)   claims against the estate; and

      (4)   unpaid mortgages on, or any indebtedness in respect of, property where the value of the decedent's interest therein, undiminished by such mortgage or indebtedness, is included in the value of the gross estate.

      (b)   Subject to the limitation in subsection (c)(1), there shall be deducted for purposes of determining the value of the taxable estate amounts representing expenses incurred in administering property not subject to claims which is included in the gross estate to the same extent such amounts would be allowable as a deduction under subsection (a), if such property were subject to claims, and such amounts are paid before the expiration of the period of limitation for assessment provided in K.S.A. 2009 Supp. 79-15,249, and amendments thereto.

      (c) (1) (A)   The deduction allowed by this section in the case of claims against the estate, unpaid mortgages or any indebtedness, when founded on a promise or agreement, shall be limited to the extent that they were contracted bona fide and for an adequate and full consideration in money or money's worth, except that in any case in which any such claim is founded on a promise or agreement of the decedent to make a contribution or gift to or for the use of any donee described in K.S.A. 2009 Supp. 79-15,222, and amendments thereto, for the purposes specified therein, the deduction for such claims shall not be so limited, but shall be limited to the extent that it would be allowable as a deduction under K.S.A. 2009 Supp. 79-15,222, and amendments thereto, if such promise or agreement constituted a bequest.

      (B)   Any income taxes on income received after the death of the decedent, or property taxes not accrued before the decedent's death or any estate, succession, legacy or inheritance taxes shall not be deductible under this section.

      (2)   In the case of the amounts described in subsection (a), there shall be disallowed the amount by which the deductions specified therein exceed the value, at the time of the decedent's death, of property subject to claims, except to the extent that such deductions represent amounts paid before the date prescribed for the filing of the estate tax return. For purposes of this section, the term "property subject to claims" means property includable in the gross estate of the decedent which, or the avails of which, would under the applicable law bear the burden of the payment of such deductions in the final adjustment and settlement of the estate, except that the value of the property shall be reduced by the amount of the deduction under K.S.A. 2009 Supp. 79-15,221, and amendments thereto, attributable to such property.

      History:   L. 2006, ch. 199, § 19; Jan. 1, 2007.