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Session: State Capitol, Room 30 Juneau, AK 99801-1182 Phone: (907) 465-3873 Fax: (907) 465-3922 Send E-Mail Interim: PO Box 1441 Wrangell, AK 99929-1141 Phone: (907) 874-2318 Fax: (907) 874-3470 352 Front St Ketchikan, AK 99901 Phone: (907) 225-8088 Fax: (907) 225-0713 |
Bill Avoids Tax Consequences for Surviving Spouses
For Immediate Release: February 23, 2000
Contact: Senator Robin Taylor at (907) 465-3873.
Juneau -- The Alaska House Wednesday passed Senate Bill 166, sponsored by Senator Robin Taylor (R-Wrangell). This legislation makes changes to Alaska's community property laws to avoid tax consequences for surviving spouses.
"In Pyle v United States, the 7th Circuit Court held that after the death of one spouse, the surviving spouse could not change a joint will or trust," said Senator Taylor. "The surviving spouse had to pay taxes on community property given to beneficiaries who would inherit after the surviving spouse's death. SB 166 would make changes to allow taxes to be delayed until the time the second spouse dies."
SB 166 prevents a community property agreement or trust from inadvertently creating a situation at the death of the first spouse requiring the payment of federal transfer taxes that would otherwise be deferred until the death of the surviving spouse. It also allows for the surviving spouse to make changes to the community property agreement or trust regarding the disposal of property.
SB 166 now goes to the Governor for signature.
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