Estate tax imposed.
Confidentiality of tax returns.
Instalment payments; closely held businesses.
Acceleration and interest.
Jurisdiction of circuit court.
Determination of tax.
Notice of obligations.
Interstate arbitration of death taxes.
The purpose of this chapter is to obtain for Wisconsin the benefit of the maximum credit allowable upon the United States estate tax, to the full extent that this state may be entitled, by imposing this tax. This chapter is to be liberally construed to effect this purpose.
History: 1971 c. 310
; 1987 a. 27
; Stats. 1987 s. 72.005.
In this chapter, unless otherwise specified:
"Administration" means any proceeding relating to a decedent's estate whether decedent died testate or intestate.
"Circuit court" means the circuit court which has jurisdiction under s. 72.27
"Death tax" is a tax imposed by a state, territory or district, because of a death or gift in contemplation of death, on property or a transfer of property, and includes estate, inheritance, succession, legacy and transfer taxes.
"Decedent" means the deceased person.
"Department" means the department of revenue.
"Distributee" means any person to whom property is transferred by reason of a death or in contemplation of death other than in payment of a claim.
"District attorney" means the district attorney of the county whose circuit court has jurisdiction under s. 72.27
"Estate" means all property of a decedent transferred by reason of the decedent's death.
"File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.
"The intestate laws of this state" include statutory rights and allowances to a child and to a surviving spouse and any other rights of a surviving spouse acquired by contract in lieu of any statutory rights.
"Pay" means mail or deliver funds to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.
"Personal representative" means any person to whom letters to administer a decedent's estate have been granted by the court but does not include a special administrator.
"Property" means any interest, legal or equitable, present or future, in real or personal property, or income therefrom, in possession and enjoyment, trust or otherwise, within or without this state.
"Transfer" means the passing of property.
Estate tax imposed.
An estate tax is imposed upon the transfer of all property that is subject to a federal estate tax and that has a taxable situs in this state. The tax imposed is equal to the credit allowed for state death taxes against the federal estate tax as finally determined. If only a portion of a decedent's property has a taxable situs in this state, the tax imposed is the amount obtained by multiplying the federal credit allowed for state death taxes by a fraction the numerator of which is the value of the decedent's estate that has a taxable situs in this state and the denominator of which is the total value of the property in the estate that qualifies for the federal credit allowed for state death taxes.
History: 1987 a. 27
Unless otherwise provided, where "notice" is required in this chapter it shall be given in the manner prescribed by s. 879.05
History: 1971 c. 310
Documents and payments required or permitted by this chapter that are filed by mail are on time if they are mailed in a properly addressed envelope, if the postage is paid, if the envelope is postmarked before midnight of the due date and if the department or the person that the department designates receives them no later than 5 days after the due date. Documents and payments that are not mailed are timely if they are received on or before the due date by the department or at the destination that the department prescribes.
History: 1991 a. 39
; 1997 a. 27
Confidentiality of tax returns. Sections 71.78 (1)
and 71.83 (2) (a) 3.
apply to any information obtained from any person by the department on a death tax return, report, schedule, exhibit or other document or from an audit report pertaining to the tax return.
Subjects liable. 72.11(1)(1)
Residents and nonresidents.
A tax is imposed upon any transfer of property to any distributee in the following cases:
When the transfer is from a person who dies while a resident of this state.
When the transfer is of property within the jurisdiction of this state and the decedent was not a resident of this state at the time of the decedent's death.
(2) Exception; reciprocity as to nonresident decedents.
A transfer, which is made taxable under this chapter and is of a nonresident decedent's intangible personal property is not subject to the tax imposed by this chapter if a like exemption is allowed at the time of the death of the decedent by the laws of the state, territory or district of the decedent's residence in favor of residents of this state. This subsection does not apply unless a tax is imposed on the transfer of the decedent's property by the laws of the state, territory or district of the decedent's residence.
Personal liability. 72.21(1)(1)
Each personal representative, special administrator, and trustee of a trust in existence and containing property on the date of the decedent's death, is severally liable for the tax imposed by this chapter, with interest, to the extent of the clear market value of all property under the control of that personal representative, special administrator or trustee, the transfer of which is subject to this tax. This liability extends to all taxes due under this chapter on all transfers to a distributee, and is not limited to the value of transfers of property in the control of the personal representative, special administrator or trustee.
A trustee of a trust which comes into existence after the decedent's death and a distributee are liable for the tax imposed by this chapter, with interest, only to the extent of the clear market value of property transferred to the trustee or distributee.
Absent a direction to the contrary, the estate residue is responsible for the estate tax. Firstar Trust Co. v. First National Bank of Kenosha, 197 W (2d) 484, 541 NW (2d) 467 (1995).