2009 Kansas Code
Chapter 79 TAXATION
Article 15 DEATH TAXES
79-15,223. Same; property passing to surviving spouse.

79-15,223

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

      79-15,223.   Same; property passing to surviving spouse. (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 value of the gross estate an amount equal to the value of any interest in property which passes or has passed from the decedent to a surviving spouse, but only to the extent that such interest is included in determining the value of the gross estate.

      (b) (1)   In the case of qualified terminable interest property, such property shall be treated as passing to the surviving spouse, and no part of such property shall be treated as passing to any person other than the surviving spouse.

      (2)   For purposes of this paragraph:

      (A)   The term "qualified terminable interest property" means property:

      (i)   Which passes from the decedent;

      (ii)   in which the surviving spouse has a qualifying income interest for life; and

      (iii)   to which an election under this paragraph applies.

      (B)   The surviving spouse has a qualifying income interest for life if:

      (i)   The surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals, or has a usufruct interest for life in the property; and

      (ii)   no person has a power to appoint any part of the property to any person other than the surviving spouse, except that this subsection shall not apply to a power exercisable only at or after the death of the surviving spouse. To the extent provided in regulations, an annuity shall be treated in a manner similar to an income interest in property, regardless of whether the property from which the annuity is payable can be separately identified.

      (C)   The term "property" includes an interest in property.

      (D)   A specific portion of property shall be treated as separate property.

      (E)   An election under this paragraph with respect to any property shall be made by the executor on the return of tax required by K.S.A. 2009 Supp. 79-15,225, and amendments thereto. Such an election, once made, shall be irrevocable.

      (3)   In the case of an annuity included in the gross estate of the decedent under K.S.A. 2009 Supp. 79-15,213, and amendments thereto, or, in the case of an interest in an annuity arising under the community property laws of a state, included in the gross estate of the decedent under K.S.A. 2009 Supp. 79-15,209, and amendments thereto, where only the surviving spouse has the right to receive payments before the death of such surviving spouse:

      (A)   The interest of such surviving spouse shall be treated as a qualifying income interest for life; and

      (B)   the executor shall be treated as having made an election under this subsection with respect to such annuity unless the executor otherwise elects on the return of tax required by K.S.A. 2009 Supp. 79-15,225, and amendments thereto. Such an election under this subsection, once made, is irrevocable.

      History:   L. 2006, ch. 199, § 23; Jan. 1, 2007.