Kansas Administrative Regulations

Regulation Number:92-2-66
Agency Title: KANSAS DEPARTMENT OF REVENUE
Article Title: Inheritance Taxes
Tax Type:Inheritance Tax
Brief Description:Valuation of property included in the gross estate.
Keywords:


Body:

92-2-66 Valuation of property included in the gross estate. (a) The property included in a decedent's gross estate pursuant to K.S.A. 79-
1547 through 79-1557, and their amendments, shall be valued as follows:
(1) Stocks and Bonds. The value of stocks and bonds shall be the fair market value per share or bond on the applicable valuation date. Treasury Reg. Sec. 20.2031-2 (1976) is hereby adopted by reference and shall be followed in determining the fair market value of stocks and bonds.
(2) Business interests. The value of any interest of a decedent in a business, whether a partnership or a proprietorship, shall be the fair market value of that interest on the applicable valuation date. Treasury Reg. Sec. 20.2031-3 (1958) is hereby adopted by reference and shall be followed in determining the fair market value of these business interests.
(3) Notes. Notes owned by the decedent shall be valued at their fair market value on the applicable valuation date. Treasury Reg. Sec. 20.2031-4 (1958) is hereby adopted by reference and shall be followed in determining the fair market value of notes.
(4) Cash. The amount of cash belonging to the decedent at the date of death, whether in the decedent's possession or deposited with a bank, shall be included in the decedent's gross estate. Treasury Reg. 20.2031-5 (1958) is hereby adopted by reference and shall be followed in determining the valuation of cash on hand or on deposit.
(5) Household items and personal effects. The value of household items and personal effects shall be the fair market value of those items on the applicable valuation date. Treasury Reg. Sec. 20.2031-6 (1958) is hereby adopted by reference and shall be followed in determining the fair market value of household items and personal effects.
(6) Life insurance and annuity contracts. The valuation of certain life insurance contracts on the life of another individual, certain annuity contracts and shares in an open-end investment company shall be determined under Treasury Reg. Sec. 20.2031-8 (1974), which is hereby adopted by reference.
(7) Interests affected by lapse of time; estates of decedents dying after December 31, 1978 and before May 1, 1986. Annuities, life estates, terms for years, remainders and reversions shall be valued in the manner and according to the tables provided in Treasury Reg. Sec. 20.2031-10 (1970), which is hereby adopted by reference.
(8) Interests affected by lapse of time; estates of decedents dying after April 30, 1986. Annuities, life estates, terms for years, remainders and reversions shall be valued in the manner and according to the tables provided in Treasury Reg. Sec. 20.2031-7 (1984), which is hereby adopted by reference.
(9) Other property. The valuation of any property not specifically described in the preceding subsections of this regulation shall be determined in accordance with the general principles set forth in Treasury Reg. Sec. 20.2031-9 (1958) and Treasury Reg. Sec. 20.2031-1 (1965), which are hereby adopted by reference.
(b) In the event the alternate valuation method is elected for federal estate tax purposes pursuant to 26 U.S.C. Sec. 2032, the alternate valuation method shall also be used for Kansas inheritance tax purposes, as provided in K.S.A. 79-1543, and its amendments. If a federal estate tax return is filed and the alternate valuation method is not elected, the Kansas alternate valuation method shall not be used. If a federal estate tax return is not filed, the estate may be valued for Kansas inheritance tax purposes as of the date of death or under the alternate valuation method provided in K.S.A. 79-1543, and its amendments. (Authorized by K.S.A. 79-1583; implementing K.S.A. 79-1543, 79-1546 to 79-1557; effective May 1, 1986.)