NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 583

HOUSE BILL 113

 

 

AN ACT TO AMEND G.S. 105-4(b) RELATING TO INHERITANCE TAX EXEMPTION FOR DEPENDENT CHILDREN.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Subsection (b) of G.S. 105-4 is hereby rewritten to read as follows:

"(b)      The persons mentioned in this class shall be entitled to the following exemptions: Widows, ten thousand dollars ($10,000.00); each child under twenty-one years of age and each child twenty-one years of age, or older, who is mentally incapacitated, or by reason of physical disability is unable to support himself, is unmarried and residing with the decedent in his home at the time of such decedent's death, or who is then institutionalized on account of such mental incapacity or physical disability five thousand dollars ($5,000.00); all other beneficiaries mentioned in this Section, two thousand dollars ($2,000.00) each: Provided, a grandchild or grandchildren shall be allowed the single exemption or pro rata part of the exemption of the parent, when the parent of any one grandchild or group of grandchildren is deceased or when the parent is living and does not share in the estate: Provided, that any part of the exemption not applied to the share of the parent may be applied to the share of a grandchild or group of grandchildren of such parent. The same rule shall apply to the taking under a will, and also in case of a specific legacy or devise: Provided, that when any person shall die leaving a widow and child or children and leaving all or substantially all of his property by will to his wife, the wife shall be allowed at her option an additional exemption of five thousand dollars ($5,000.00) for each child under twenty-one years of age, and each child twenty-one years of age, or older, who is mentally incapacitated, or by reason of physical disability is unable to support himself, is unmarried and residing with the decedent in his home at the time of such decedent's death, or who is then institutionalized by reason of such mental incapacity or physical disability; provided further, that whenever the wife elects to claim such additional exemption, the child or children shall not be allowed the exemption of five thousand dollars ($5,000.00) for each child hereinabove provided for."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be in full force and effect on and after July 1, 1965.

In the General Assembly read three times and ratified, this the 18th day of May, 1965.