PURPOSE: This rule shall serve as an interpretive guideline under section 145.020, RSMo (1969) in determining property subject to tax. 12 CSR 10-8

NOTE: This regulation is applicable to decedents dying on or before December 31, 1980.

1. (1) Omission of a particular asset from this rule does not exempt that property from inheritance tax.
2. (2) Real property located within this state is subject to inheritance tax under section 145.020, RSMo (1969) (Op. Atty. Gen., July 12, 1934).
3. (3) Tangible personal property is subject to tax only in the state in which it is located under section 145.020, RSMo (1969) (Op. Atty. Gen., July 12, 1934).
4. (4) Intangible personal property belonging to a resident decedent is subject to tax wherever situated. Intangible personal property includes stocks, bonds, notes, goodwill, accounts receivable, leasehold interests, claims, debts, partnership interests, patents and other choses in action whether held in trust or otherwise.
5. (5) The interest in partnership property is an intangible taxable in the state of the decedent’s domicile even though part of the property is real estate located in another state (Op. Atty. Gen., March 22, 1937).
6. (6) Assets payable on death to a named beneficiary (that is United States Government Bonds, etc.), are subject to inheritance tax under the provisions of section 145.020, RSMo (1969).
7. (7) Insurance proceeds payable to decedent’s estate are subject to inheritance tax.
8. (8) Proceeds of a single premium life insurance and annuity contract wherein the right to have the premium returned at any time is retained by the insured, are subject to inheritance tax.
9. (9) Proceeds of an annuity contract payable to a named beneficiary upon the death of the annuitant are subject to inheritance tax as a transfer made to take effect in possession or enjoyment at or after death of the transferor. This contract is taxable even where no funds were payable to decedent during his/her lifetime and when decedent could not obtain a refund of premiums, but did have the right to change the beneficiary at any time.
10. (10) The proceeds of a matured endowment policy left with the company as an investment are taxable (Op. Atty. Gen. No. 40, June 5, 1958, and No. 66, January 6, 1936).
11. (11) A gift is taxable if the gift has not been completed by delivery prior to death of decedent. Delivery is essential to complete a gift. The term “transfer to take effect in possession or enjoyment at or after death,” is defined as those transfers in which the transferor has retained for his/her life or any period not ending before his/her death, the possession or enjoyment of or the income from the property or the right to designate the persons who shall possess or enjoy the property or the income therefrom. Thus, if a person transfers property in trust for a child but reserves the right to the income for life, the transfer to the child does not become effective in enjoyment until the death of the donor. The law accordingly regards such a transfer as a testamentary disposition and the donor has parted with nothing but the legal title during his/her lifetime (Op. Atty. Gen., December 7, 1950).
12. (12) Bequests to cemeteries wherein provisions are made for the beautification and care of specific plot(s), for the benefit of an individual, are subject to inheritance tax (Op. Atty. Gen No. 57, January 6, 1955).
13. (13) Damages received under the wrongful death statutes are not subject to inheritance tax, as they are not received from the decedent in the form of a taxable transfer (Op. Atty. Gen., March 17, 1950).

AUTHORITY: sections 136.030 and 136.120, RSMo 1969.* Inheritance tax rule 61-020 was last filed on Dec. 31, 1975, effective Jan. 10, 1976.

*Original authority: 136.030, RSMo 1945, amended 1947, 1949, 1965 and 136.120, RSMo 1945.