Senate Bill No. 597

(By Senator Plymale)

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[Introduced February 22, 1999;

referred to the Committee on the Judiciary.]

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A BILL to amend and reenact section four-a, article three-a, chapter forty-four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to removing a reference to inheritance tax; and requiring that a release of any estate tax lien must be recorded before an estate can be closed under a short-term settlement.

Be it enacted by the Legislature of West Virginia:
That section four-a, article three-a, chapter forty-four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 3A. OPTIONAL PROCEDURE FOR PROOF AND ALLOWANCE OF CLAIMS AGAINST ESTATES OF DECEDENTS; COUNTY OPTION.
§44-3A-4a. Short form settlement.

In all estates of decedents administered under the provisions of this article where an inheritance tax release has been filed with the clerk and more than one hundred twenty days has elapsed since the filing of any notice required by section four, an estate may be closed by a short form settlement filed in compliance with this section: Provided, That a lien, if any, for payment of estate taxes under article eleven of chapter eleven has been released and that the release has been filed with the clerk.
The fiduciary may file with the fiduciary supervisor a proposed short form settlement which shall contain an affidavit made by the fiduciary that the time for filing claims has expired, that no known and unpaid claims exist against the estate and showing the allocation to which each distributee and beneficiary is entitled in the distribution of the estate and contain a representation that the property to which each distributee or beneficiary is entitled has been or upon approval of the settlement will be delivered thereto, or that each distributee and beneficiary has agreed to a different allocation. The application shall contain a waiver signed by each distributee and beneficiary.
Such waiver may be signed in the case of a distributee or beneficiary under a disability by the duly qualified personal representative of such distributee or beneficiary. A personal representative signing such waiver shall be responsible to his or her cestui que trust for any loss resulting from such waiver.
The fiduciary supervisor shall examine the affidavit and waiver and determine that the allocation to the distributees and beneficiaries set forth in the affidavit is correct and all proper parties signed the waiver, both shall be recorded as in the case of an in lieu of settlement. If the fiduciary supervisor identifies any error the fiduciary supervisor shall within five days of the filing of such settlement give the fiduciary notice as in the case of any other incorrect settlement.
If the short form settlement is proper the fiduciary supervisor shall proceed as in the case of any other settlement.


NOTE: The purpose of this bill is to require a recorded release of any estate tax liens before closing an estate under short form settlement.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.