(a) Except as otherwise provided in subsection (c), the following rules apply:
(1) To the extent that a provision of a decedent‘s will expressly and unambiguously directs the apportionment of an estate tax, the tax must be apportioned accordingly regardless of whether such will is probated.
(2) Any portion of an estate tax not apportioned pursuant to paragraph (a)(1) of this section must be apportioned in accordance with any provision of a revocable trust of which the decedent was the settlor which expressly and unambiguously directs the apportionment of an estate tax. If conflicting apportionment provisions appear in two (2) or more revocable trust instruments, the provision in the most recently dated instrument prevails. For purposes of this paragraph:
(A) A trust is revocable if it was revocable immediately after the trust instrument was executed, even if the trust subsequently becomes irrevocable; and
(B) The date of an amendment to a revocable trust instrument is the date of the amended instrument only if the amendment contains an apportionment provision.
(3) If any portion of an estate tax is not apportioned pursuant to paragraph (a)(1) of this section or paragraph (a)(2) of this section, and a provision in any other dispositive instrument expressly and unambiguously directs that any interest in the property disposed of by the instrument is or is not to be applied to the payment of the estate tax attributable to the interest disposed of by the instrument, the provision controls the apportionment of the tax to that interest.
(b) Subject to subsection (c) of this section, and unless the decedent expressly and unambiguously directs the contrary, the following rules apply:
(1) If an apportionment provision directs that a person receiving an interest in property under an instrument is to be exonerated from the responsibility to pay an estate tax that would otherwise be apportioned to the interest,
(A) The tax attributable to the exonerated interest must be apportioned among the other persons receiving interests passing under the instrument, or
(B) If the values of the other interests are less than the tax attributable to the exonerated interest, the deficiency must be apportioned ratably among the other persons receiving interests in the apportionable estate that are not exonerated from apportionment of the tax.
(2) If an apportionment provision directs that an estate tax is to be apportioned to an interest in property a portion of which qualifies for a marital or charitable deduction, the estate tax must first be apportioned ratably among the holders of the portion that does not qualify for a marital or charitable deduction and then apportioned ratably among the holders of the deductible portion to the extent that the value of the nondeductible portion is insufficient.
(3) Except as otherwise provided in paragraph (4) of this subsection, if an apportionment provision directs that an estate tax be apportioned to property in which one (1) or more time-limited interests exist, other than interests in specified property under section 15-3-1307, Idaho Code, the tax must be apportioned to the principal of that property, regardless of the deductibility of some of the interests in that property.
(4) If an apportionment provision directs that an estate tax is to be apportioned to the holders of interests in property in which one (1) or more time-limited interests exist and a charity has an interest that otherwise qualifies for an estate tax charitable deduction, the tax must first be apportioned, to the extent feasible, to interests in property that have not been distributed to the persons entitled to receive the interests.
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Terms Used In Idaho Code 15-3-1303

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Apportionable estate: means the value of the gross estate as finally determined for purposes of the estate tax to be apportioned reduced by:
Idaho Code 15-3-1302
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
  • Decedent: A deceased person.
  • Estate tax: means a federal, state, or foreign tax, however denominated, imposed because of the death of an individual and interest and penalties associated with the tax. See Idaho Code 15-3-1302
  • Grantor: The person who establishes a trust and places property into it.
  • Gross estate: The total fair market value of all property and property interests, real and personal, tangible and intangible, of which a decedent had beneficial ownership at the time of death before subtractions for deductions, debts, administrative expenses, and casualty losses suffered during estate administration.
  • Gross estate: means , with respect to an estate tax, all interests in property subject to the tax. See Idaho Code 15-3-1302
  • person: includes a corporation as well as a natural person;
    • Idaho Code 73-114
  • Probate: Proving a will
  • Property: includes both real and personal property. See Idaho Code 73-114
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
  • Trustee: A person or institution holding and administering property in trust.
  • Trustor: The person who makes or creates a trust. Also known as the grantor or settlor.
  • Value: means , with respect to an interest in property, fair market value as finally determined for purposes of the estate tax that is to be apportioned, reduced by any outstanding debt secured by the interest without reduction:
    • Idaho Code 15-3-1302
    (c) A provision that apportions an estate tax is ineffective to the extent that it increases the tax apportioned to a person having an interest in the gross estate over which the decedent had no power to transfer immediately before the decedent executed the instrument in which the apportionment direction was made. For purposes of this subsection, a testamentary power of appointment is a power to transfer the property that is subject to the power.
    (d) For purposes of this section, a decedent’s will, revocable trust, or other dispositive instrument that contains the applicable phrase(s) set forth in paragraphs (1), (2) or (3) of this subsection (or other substantially similar language in other dispositive instruments not listed in said paragraphs), shall satisfy the part’s requirement for an express and unambiguous direction as to what properties are to bear or not bear the payment of those taxes. Other language may be used to direct the apportionment of the estate tax, but if it is determined by a court that the direction in the will, trust, or other dispositive instrument does not expressly and unambiguously direct the apportionment of all of the estate tax with respect to all property that constitutes the gross estate, the estate tax that is not clearly and unambiguously apportioned shall be apportioned in accordance with the provisions of this part. The portions of said phrase(s) set forth in parentheses indicate suggestions or descriptions of alternate language for the word or phrase immediately preceding the language in parentheses which may be added, deleted, or varied in the instrument. Said phrases are:
    (1) In the case of a will, “all taxes arising as a result of my death, whether attributable to assets passing under this will or otherwise, shall be paid out of the residue of my probate estate (or apportioned to other specifically identified assets, probate or otherwise)”; or
    (2) In the case of a revocable trust, “all taxes arising as a result of the Grantor‘s (Settlor’s or Trustor‘s) death, whether attributable to assets passing under this trust instrument or otherwise, shall be paid out of the residue of the trust estate (or apportioned to other specifically identified assets in trust or otherwise)”; or
    (3) In the case of a charitable remainder trust as to assets already transferred to or in the trust, “no estate taxes and state death taxes shall be charged or apportioned to and paid from the assets of this charitable remainder trust” or “The (lifetime or term) annuity (unitrust) interest of the Successor Recipient (Beneficiary) will take effect upon the death of the Initial Recipient (Beneficiary) only if the Successor Recipient (Beneficiary) furnishes the funds for payment of any federal estate taxes and state death taxes for which the Trustee may be liable upon the death of the Initial Recipient (Beneficiary). If the funds are not furnished by the Successor Recipient (Beneficiary), the annuity (unitrust) period shall terminate on the death of the Initial Recipient (Beneficiary), notwithstanding any other provision in this instrument to the contrary.”