Okla. Stat. tit. 16, sec 25.5

Oklahoma Estate Tax Lien

History: The original standard was adopted December 2, 1950, without number designation, 1950 Proceedings of the Annual Meeting of the Oklahoma Bar Association at 110-15. The standard, apparently by common consent, became 29. The standard apparently had never been printed in the O.B.A.J. prior to its printing as a part of the 1962 Real Property Committee's Report, 33 O.B.A.J. 2157, 2183-84 (1962). Williamson case, supra , added to "Authority," December 1964, as per Proposal No. 6 of 1964 Real Property Committee, 35 O.B.A.J. 2045 (1964), and approved, upon recommendation of Real Property Section, by House of Delegates, 36 O.B.A.J. 179, 182 (1965). In 1980, the Title Examination Standards Committee of the Real Property Section recommended that the language following the words "tax liability" in the body of the standard be substituted for previously used language, that the statute cited in Authority be changed from 68 O.S.A. § 989m to the present citation, that the cited opinion of the Attorney General be added to Authority and that a sentence referring to the issuance of certificates by the Oklahoma Tax Commission be deleted from Comment, 51 O.B.J. 2726-27 (1980). The recommendations were approved December 3, 1980, by the Real Property Section and adopted by the House of Delegates December 5, 1980. The 1996 Report of the Title Examination Standards Committee proposed revising the standard to correlate more closely with the statute. 67 O.B.J. 3247, 3251 (1996). The Real Property Section approved the proposal on November 14, 1996; the House of Delegates adopted the recommendation on November 15, 1996. The 2006 Report of the Title Examination Standards Committee recommended amending Standard 25.5 to reflect the change in the law as reflected by the amendment of 68 O.S. § 815(C) which became effective on Nov. 1, 2006. The Real Property Law Section approved, November 16, 2006, and the House of Delegates adopted the proposal November 17, 2006. The Title Examination Standards Committee recommended amending Title Standard 25.5 to reflect the repeal of the Oklahoma Estate Tax as of January 1, 2010. The Real Property Law Section approved, November 20, 2008, and the House of Delegates adopted the proposal November 21, 2008. (superseded document available) The 2015 Title Examination Standards Sub-Committee proposed a new Caveat be included as a preamble to Standard 25.5 to reflect the current uncertainty of the status of Oklahoma estate tax liens. The Real Property Section approved the proposal on November 5, 2015 and the House of Delegates adopted the amendment on November 6, 2015. (superseded document available)

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Title Examination Standards
Chapter 1, App.
Chapter 25. Tax Liens
§25.5. Oklahoma Estate Tax Lien.

A. SCOPE.
For decedents who die on or before December 31, 2009, the Oklahoma estate tax lien attaches to all of the property which is part of the gross estate of the decedent, as defined under Article 8 of the Oklahoma Tax Code, immediately upon the death of the decedent, with the exception of property which falls under one or more of the following categories:
1. Property used for the payment of charges against the estate and expenses of administration, allowed by the court having jurisdiction thereof; or 2. Property reported to the Oklahoma Tax Commission by the responsible party or parties which shall have passed to a bona fide purchaser for value, in which case such tax lien shall attach to the consideration received from such purchaser by the heirs, legatees, devisees, distributees, donees, or transferees; or 3. Property passing to a surviving spouse, either through the estate of the decedent, by joint tenancy or otherwise. Authority: 68 O.S. § 811. Comment: The title examiner should be provided with sufficient written evidence to be satisfied that the particular real property falls under one or more of the exceptions as listed above. Otherwise, the title examiner should assume that all real property which is part of the gross estate of the decedent is subject to the lien of the Oklahoma estate tax.
B. DURATION .
The Oklahoma estate tax lien continues as a lien on all of the property in the decedent's gross estate, except for the categories of property as described in A above, for ten (10) years from the death of the decedent, unless an Order releasing taxable estate or Order exempting the estate from estate tax is obtained from the Oklahoma Tax Commission as to the property in question.
Subsequent to the lapse of ten (10) years after the death of any decedent, title acquired through such decedent shall be considered marketable as to Oklahoma inheritance, estate or transfer tax liability unless prior thereto a tax warrant filed by the Oklahoma Tax Commission appears of record. If the Oklahoma Tax Commission causes a tax warrant to be filed of record within said ten (10) year period, then a release of that tax warrant must be obtained and filed of record.
Authority: 68 O.S. §§ 811(e) & 815(c); Okla. Atty. Gen. Op. No. 72-122 (May 1, 1972); State ex rel . Williamson v. Longmire, 281 P.2d 949 (Okla. 1955). Comment: Said statutes are constitutional under authority of Love v. Silverthorn , 187 Okla. 114, 101 P.2d 254, 129 A.L.R. 676 (1940).
C. REPEALER.
There will be no Oklahoma estate tax lien on the estate of a decedent with a date of death on or after January 1, 2010.

Caveat: Generally, the Oklahoma estate tax was repealed for deaths occurring on or after January 1, 2010. No estate tax lien attaches to real property passing from the decedents dying January 1, 2010, and after, and no estate tax release is required to render such real property marketable under these title standards. 68 O.S. § 804.1

Estate tax lien obligations for decedents dying prior to January 1, 2010 remain in effect. 68 O.S. § 804.1.

The Oklahoma estate tax survives for death occurring subsequent to January 1, 2010, to the extent the Oklahoma estate tax may be imposed due to the interaction of the Oklahoma statutes and the computed Federal estate tax credit for state estate and inheritances allowable in the computation of Federal estate taxes on the Federal estate tax return 68 O.S. § 804. Pursuant to 68 O.S. § 804.1, no estate tax lien attaches to any property for deaths occurring on or after January 1, 2010.

Prior to the repeal effective January 1, 2010, Oklahoma statutes (former 68 O.S. § 815 C) provided that "no assessment of inheritance, estate or transfer tax shall be made subsequent to the lapse of ten (10) years after the date of the death of any decedent." Oklahoma Tax Commission Regulation OAC 710: 35-3-9 provides that the Oklahoma estate tax lien is extinguished upon the expiration of ten (10) years from the date of the death of the decedent unless a tax warrant is filed. However, former 68 O.S. § 815 C was repealed in its entirety effective January 1, 2010, and there appears to be no other statutory authority for the extinguishment of estate tax liens ten (10) years after death.

Upon written request, the Oklahoma Tax Commission continues to issue the ten (10) year letter which certifies that there are no unpaid assessments of Oklahoma estate or transfer taxes for a specific decedent deceased more than ten (10) years. The ten (10) year OTC letter cites the now repealed 68 O.S. § 815 as authority.

The issue is under continuing review.

December 1964, as per Proposal No. 6 of 1964 Real Property Committee, 35 O.B.A.J. 2045 (1964), and approved, upon recommendation of Real Property Section, by House of Delegates, 36 O.B.A.J. 179, 182 (1965).

In 1980, the Title Examination Standards Committee of the Real Property Section recommended that the language following the words "tax liability" in the body of the standard be substituted for previously used language, that the statute cited in Authority be changed from 68 O.S.A. § 989m to the present citation, that the cited opinion of the Attorney General be added to Authority and that a sentence referring to the issuance of certificates by the Oklahoma Tax Commission be deleted from Comment, 51 O.B.J. 2726-27 (1980). The recommendations were approved December 3, 1980, by the Real Property Section and adopted by the House of Delegates December 5, 1980.

The 1996 Report of the Title Examination Standards Committee proposed revising the standard to correlate more closely with the statute. 67 O.B.J. 3247, 3251 (1996). The Real Property Section approved the proposal on November 14, 1996; the House of Delegates adopted the recommendation on November 15, 1996.

The 2006 Report of the Title Examination Standards Committee recommended amending Standard 25.5 to reflect the change in the law as reflected by the amendment of 68 O.S. § 815(C) which became effective on Nov. 1, 2006. The Real Property Law Section approved, November 16, 2006, and the House of Delegates adopted the proposal November 17, 2006.

The Title Examination Standards Committee recommended amending Title Standard 25.5 to reflect the repeal of the Oklahoma Estate Tax as of January 1, 2010. The Real Property Law Section approved, November 20, 2008, and the House of Delegates adopted the proposal November 21, 2008. (superseded document available)

The 2015 Title Examination Standards Sub-Committee proposed a new Caveat be included as a preamble to Standard 25.5 to reflect the current uncertainty of the status of Oklahoma estate tax liens. The Real Property Section approved the proposal on November 5, 2015 and the House of Delegates adopted the amendment on November 6, 2015. (superseded document available)