Uniform Estate Tax Apportionment Act Law and Legal Definition

Uniform Estate Tax Apportionment Act was created by the National Conference of Commissioners on Uniform State Law (NCCUSL) in 2003. The 2003 version is a revision of earlier acts from 1958, 1964, and 1982. This act provides procedures for apportioning the burden of estate taxes among beneficiaries. Generally, the tax burden is allocated to the interests of estate or trust beneficiaries in proportion to their interests in the whole of the taxable estate. Statutory apportionment applies only to the extent there is no clear and effective decedent’s tax burden direction to the contrary. Under the statutory scheme, marital and charitable beneficiaries generally are insulated from bearing any of the estate tax, and a decedent’s direction that estate tax be paid from a gift to be shared by a spouse or charity with another is construed to locate the tax burden only on the taxable portion of the gift. The Act provides relief for persons forced to pay estate tax on values passing to others whose interests, though contributing to the tax, are unreachable by the fiduciary. The Act also addresses the allocation of the burden incurred because of several federal transfer tax provisions that did not exist when the 1964 Act was adopted.

The act has been adopted by Alabama, Arkansas, Idaho, Massachusetts, New Mexico, U.S. Virgin Islands and Washington. In 2010, Minnesota adopted the act.