GENERAL ASSEMBLY OF NORTH CAROLINA
1987 SESSION
CHAPTER 694
AN ACT TO MAKE TECHNICAL AMENDMENTS REGARDING APPORTIONMENT OF THE FEDERAL ESTATE TAX BURDEN.
The General Assembly of North Carolina enacts:
Section 1. G.S. 28A-27-2(b) reads as rewritten:
"(b) In the event the decedent's will provides a method
of apportionment of the tax different from the method provided in subsection
(a) above, the method described in the will shall control. However, in the
case of any will executed on or after October 1, 1986, A a general
direction in the will that taxes shall not be apportioned, whether or not
referring to this Article, but shall be paid from the residuary portion of the
estate shall not, unless specifically stated otherwise, apply to taxes imposed
on assets which are includible in the valuation of the decedent's gross estate
for federal estate tax purposes only by reason of Sections 2041, 2042 or 2044
of the Internal Revenue Code of 1954 or corresponding provisions of any
subsequent tax law. In the case of an estate administered under any will
executed on or after October 1, 1986, In in the event that
the estate tax computation involves assets described in the preceding sentence,
unless specifically stated otherwise, apportionment shall be made against such
assets and the tax so apportioned shall be recovered from the persons receiving
such assets as provided in Sections 2206, 2207 or 2207A of the Internal Revenue
Code of 1954 or corresponding provisions of any subsequent tax."
Sec. 2. G.S. 28A-27-5(a) reads as rewritten:
"(a) Any interest for which a deduction or exemption is allowable
allowed under the federal revenue laws in determining the value of
the decedent's net taxable estate, such as property passing to or in trust for
a surviving spouse and gifts or bequests for charitable, public, or similar
purposes, shall not be included in the computation provided for in Section
28A-27-2 to the extent of the allowable deduction or exemption. When such an
interest is subject to a prior present interest which is not allowable as a
deduction or exemption, such present interest shall not be included in the
computation provided for in this Article and no tax shall be apportioned to or
paid from principal."
Sec. 3. G.S. 28A-27-5(d) reads as rewritten:
"(d) To the extent that property passing to or in trust
for a surviving spouse or any charitable, public, or similar gift or bequest
does not constitute an allowable allowed deduction for purposes
of the tax solely by reason of an inheritance tax or other death tax imposed
upon and deductible from the property, the property shall not be included in
the computation provided for in this Article, and to that extent no
apportionment shall be made against the property. This section does not apply
in any instance where the result will be to deprive the estate of a deduction
otherwise allowable under Section 2053(d) of the Internal Revenue Code of 1954
of the United States or corresponding provisions of any subsequent tax law, relating
to deduction for State death taxes on transfers for public, charitable, or
religious uses."
Sec. 4. This act is effective upon ratification.
In the General Assembly read three times and ratified this the 29th day of July, 1987.