PURPOSE: This rule shall serve as an interpretive guideline as to those matters concerning the assessment of inheritance and estate tax and preparation of the report of appraiser under section 145.160, RSMo (1969).

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

1. (1) The name and address of the estate’s attorney should appear on all reports of appraiser, inheritance short form assessments and estate tax appraisals.
2. (2) Every taxable asset and allowed deduction must be listed by category on the report of appraiser or listings attached if space on the report is not available.
3. (3) If property listed in the inventory required by section 473.233, RSMo (1986) is not taxable, a brief statement must be made as to the basis for it not being taxable.

4. (4) Indicate whether stock listed on the report is listed on an exchange, sold over-thecounter or closely held.

   1. (A) Stocks and bonds listed on a security exchange must be valued at the average of the high and low prices on the date of death. If the death occurs on a date on which the exchange is closed, the average of the closing price on the last trading date preceding the date of death and the opening price on the first trading date following the date of death must be used.
   2. (B) Stock traded over-the-counter must be valued at the bid price on the date of death.
   3. (C) A statement must be attached explaining the method of valuation used for closely held stock.

5. (5) United States Government Bonds.

   1. (A) Treasury notes and bonds which are sold on the open market must be valued like over-the-counter securities.
   2. (B) Current income bonds which may be redeemed at face value without penalty by the executor or administrator must be valued at face value regardless of whether the bonds are actually so redeemed.
   3. (C) Bonds which may be used at face value to pay federal estate taxes must be valued at face value to the extent they can be used by the estate to pay the taxes. Thus, if the federal estate tax exceeds the value of the bonds, they must all be valued at par. If the amount of the bonds exceeds the federal estate tax, then only so many of the bonds as may be used to pay the federal estate tax should be valued at par. The remainder must be valued as set out previously.
   4. (D) “E” bonds must be valued at their redemption value as of the date of death, not face or maturity value.
6. (6) A recapitulation in every case shall be completed by the appraiser and must balance with the assets and liabilities shown on the report. The net estate shown in the recapitulation must agree with the total amount of estate distributed. Reports not complying with this requirement will be returned to the probate court.
7. (7) When the estate consists of personal property only, the prosecuting attorney, with the consent of the director, may agree with the parties liable to pay any tax upon the amount of same, and the probate court, if it approves the agreement, shall enter judgment accordingly and no appraiser shall be appointed. Form of consent for prosecuting attorney to agree on amount of inheritance tax is furnished by the director upon request. The report of appraiser or inheritance tax short form assessment may be used for reporting tax for this type of estate.
8. (8) If the will of the decedent has been contested, the appraiser cannot complete his/her report until the will contest suit has been disposed of. The director should be notified that there is a will contest. Whether the suit is settled or is tried and a judgment rendered, the inheritance taxes must be assessed on the actual amounts received from the estate by various parties (Estate of Gartside v. Morris, (1947) 357 Mo. 181,207 SW2d 273). A copy of the judgment must be attached to the report. If the suit is settled, a copy of the settlement agreement must be an attachment to the report. Unless the assignment of interest is in settlement of a will contest, assignments of interest do not effect inheritance taxes. The tax is assessed as if the assignment had not been made (Op. Atty. Gen. No. 33, February 10, 1950).

AUTHORITY: sections 136.030 and 136.120, RSMo 1969.* Inheritance tax rule 61-160 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.