WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

(D)  LIFE INSURANCE BENEFIT.

THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF THE
PROCEEDS OF A LIFE INSURANCE POLICY PAYABLE TO ANY BENEFICIARY
OTHER THAN THE ESTATE OF THE INSURED.

(E)  NONPROFIT ORGANIZATION.

THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF
PROPERTY THAT PASSES FROM A DECEDENT TO OR FOR THE USE OF:

(1)  AN ORGANIZATION EXEMPT FROM TAXATION UNDER §
501(C)(3) OF THE INTERNAL REVENUE CODE THAT:

(I)  IS INCORPORATED UNDER THE LAWS OF THIS
STATE;

(II)  CONDUCTS A SUBSTANTIAL PART OF ALL ITS
ACTIVITIES IN THIS STATE OR IN THE DISTRICT OF COLUMBIA; OR

(III)  HAS ITS PRINCIPAL PLACE OF BUSINESS IN A
JURISDICTION WHOSE LAW:

1.  DOES NOT IMPOSE DEATH TAXES ON THE
RECEIPT OF PROPERTY THAT PASSES FROM A DECEDENT TO A BENEFICIARY
OF THIS STATE THAT IS EXEMPT FROM TAXATION UNDER § 501(C)(3) OF
THE INTERNAL REVENUE CODE; OR

2.  CONTAINS A RECIPROCAL EXEMPTION FROM
DEATH TAXES SIMILAR TO THE EXEMPTION ALLOWED IN THIS SUBSECTION;
OR

(2)  THE MONTGOMERY COUNTY GENERAL HOSPITAL,
INCORPORATED, OF SANDY SPRING, MARYLAND.

(F)  NONRESIDENT DECEDENT PERSONAL PROPERTY.

(1)  EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF
PERSONAL PROPERTY THAT PASSES FROM A NONRESIDENT DECEDENT IF, AT
THE TIME OF DEATH, THE DECEDENT IS A RESIDENT OF A STATE OR
FOREIGN COUNTRY WHOSE LAW, ON THE DATE OF THE DECEDENT'S DEATH:

(I)  DOES NOT IMPOSE DEATH TAXES ON THE RECEIPT
OF SIMILAR PERSONAL PROPERTY OF A RESIDENT OF THIS STATE; OR

(II)  CONTAINS A RECIPROCAL EXEMPTION FROM DEATH
TAXES SIMILAR TO THE EXEMPTION ALLOWED UNDER THIS SUBSECTION.

(2)  THE EXEMPTION UNDER PARAGRAPH (1) OF THIS
SUBSECTION DOES NOT INCLUDE THE RECEIPT OF TANGIBLE PERSONAL
PROPERTY THAT HAS A TAXABLE SITUS IN THIS STATE.

(G)  $150 LIMIT PER PERSON.

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