Title: S.L. 1965-439
Category: Introduced Bill
Keywords: Bill ?

NORTH CAROLINA GENERAL ASSEMBLY
1965 SESSION

CHAPTER 439
HOUSE BILL 467

AN ACT TO REWRITE G.S. 105-13 RELATING TO TAXATION OF LIFE INSURANCE PROCEEDS.

The General Assembly of North Carolina do enact:

Section 1.  G.S. 105-13 is hereby rewritten to read as follows:
"§ 105-13.  Life Insurance Proceeds. The proceeds of life insurance policies payable at or after the death of the decedent shall in the following instances be taxable at the rates provided in this Article subject to the exemptions in Section 105-3:
(1)	When such insurance proceeds are receivable by the executor, administrator or personal representative as insurance under policies upon the life of the decedent.
(2)	When such insurance proceeds are receivable by all other beneficiaries under policies upon the life of the decedent with respect to which the decedent possessed at his death any of the incidents of ownership, exercisable alone or in conjunction with any other person. For purposes of the preceding sentence, the term 'incident of ownership' includes a reversionary interest (whether arising by the express terms of the policy or other instrument or by operation of law) only if the value of such reversionary interest exceeded five percent (5%) of the value of the policy immediately before the death of the decedent. As used in this paragraph, the term 'reversionary interest' includes a possibility that the policy, or the proceeds of the policy, may return to the decedent or his estate, or may be subject to a power of disposition by him. The value of a reversionary interest at any time shall be determined (without regard to the fact of the decedent's death) by usual method of valuation, including the use of the mortuary and annuity tables set out as Sections 8-46 and 8-47. In determining the value of a possibility that the policy or proceeds thereof may be subject to a power of disposition by the decedent, such possibility shall be valued as if it were a possibility that such policy or proceeds may return to the decedent or his estate."
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  All laws and clauses of laws in conflict with this Act are hereby repealed.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 7th day of May, 1965.