Hello cush03-ga,
At the outset, I should note that I am not a Kansas tax specialist,
but a Researcher for Google Answers. As a Researcher, I can give you
the results of the research I have done on the Internet, and
calculations based on that research. But I cannot give legal or tax
advice. If you need such advice, you should consult a qualified
expert in Kansas.
According to the Kansas Department of Revenue, there are three types
of state taxes that might be imposed on a Kansas estate: estate tax,
if the death occurred on or after July 1, 1998; succession tax, if the
death occurred on or after June 6, 2002; and inheritance tax, if the
death occurred before July 1, 1998. (It seems that these taxes are
paid by the estate, not by persons receiving shares of the estate.)
"Estate / Succession / Inheritance" (Last Modified 11/04/2002)
Kansas Department of Revenue
http://www.ksrevenue.org/perstaxtypesestate.htm
Based on a date of death of October 2002, it appears only the estate
and succession taxes would apply to this estate.
The page cited above explains that, for deaths occurring on or after
January 2, 2002, the Kansas estate tax "is equal to the federal credit
for state death taxes computed on the basis of 1997 federal law". As
a more detailed booklet by the Kansas Deparment of Revenue shows, for
a Kansas estate valued at $1,600,000 without any allowable federal
deductions, this amount is $70,800. I determined this number by,
first, looking at "Kansas Table B - Worksheet" on page 6 of the
booklet. It refers to line 3 of federal Form 706, which -- assuming
that the executor does not elect alternative valuation and that there
are no allowable deductions -- would be $1,600,000. After subtracting
an adjustment of $60,000, the "federal adjusted taxable estate" would
be $1,540,000. Taking that figure up to "Kansas Table B" (also on
page 6), the maximum credit for state death taxes would be $70,800.
That amount would be the Kansas estate tax, if the estate consists
entirely of Kansas property. (You can consult the Kansas booklet and
the federal forms to see how this figure would change if the executor
elects alternative valuation, if there are allowable federal
deductions, or if some of the property is not considered Kansas
property.)
"Kansas Estate and Succession Tax Booklet" (Pub. KS-1950) (Rev. 10/02)
Kansas Department of Revenue
http://www.ksrevenue.org/pdf/forms/pub1950.pdf
"United States Estate (and Generation-Skipping Transfer) Tax Return"
(Form 706) (Rev. August 2002)
Internal Revenue Service
http://www.irs.gov/pub/irs-pdf/f706.pdf
"Instructions for Form 706" (Rev. August 2002)
Internal Revenue Service
http://www.irs.gov/pub/irs-pdf/i706.pdf
Your wife's share of the estate is $240,000 out of $1,600,000, or 15%
of the total estate. So her share would be reduced by 15% of the
total tax of $70,800, or $10,620. In other words, $10,620 would be
the Kansas estate tax taken from her portion of the estate.
The initial page cited above also explains that the Kansas succession
tax is "10% on the first $100,000, 12% on any amount in excess of
$100,000 and up to $200,000 and 15% on all amounts in excess of
$200,000." If your wife falls outside a specific list of immediate
relatives (see page 4 of the Kansas booklet), her share would be taxed
as follows: $10,000 (for the first $100,000), plus $12,000 (for the
second $100,000), plus $6,000 (for the remaining $40,000). So the
Kansas succession tax taken from her portion of the estate would be
$28,000. However, if your wife falls within that list of immediate
relatives, there would be no tax on her share.
I hope that this information is helpful.
- justaskscott-ga
Search terms used on Google:
kansas taxation
Search term used on Kansas Department of Revenue web site:
"estate tax"
Search term used for forms and publications on IRS web site:
706 |
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