Ch. 2

LAWS OF MARYLAND

In subsection (d) of this section, the former clause
"for the purpose of ascertaining the tax thereon and
before any distribution thereof shall be authorized"
is deleted as superfluous.

Also in subsection (d) of this section, the former
references to regulations as "effective" and "as
promulgated by the United States Treasury Department,
Internal Revenue Service, as such regulations may be
amended from time to time" are deleted as surplusage.

Defined terms: "Inheritance tax" § 1-101
"Internal Revenue Code" § 1-101
"Less than absolute interest" § 7-201
"Person" § 1-101 "Property" § 1-101
"Property that passes from a decedent" § 7-201

7-210. SUBSEQUENT INTERESTS.

(A)  IF APPLICATION TO PREPAY TAX IS FILED.

(1)  IF AN APPLICATION TO PREPAY INHERITANCE TAX FOR A
SUBSEQUENT INTEREST IN PROPERTY IS FILED UNDER § 7-219 OF THIS
SUBTITLE, THE VALUE OF THE SUBSEQUENT INTEREST IS DETERMINED BY
SUBTRACTING THE VALUE OF ALL PRECEDING AND CONCURRENT INTERESTS
FROM THE VALUE OF THE WHOLE PROPERTY.

(2)  THE TOTAL INHERITANCE TAX ON ALL INTERESTS IN THE
PROPERTY VALUED SHALL EQUAL THE INHERITANCE TAX THAT WOULD HAVE
BEEN DUE IF AN ABSOLUTE INTEREST IN THE PROPERTY' PASSED FROM THE
DECEDENT.

(B)  IF INTEREST VESTS IN NONAPPLICANT.

(1)  IF A SUBSEQUENT INTEREST IN PROPERTY ULTIMATELY
VESTS IN POSSESSION IN A PERSON OTHER THAN THE PERSON BY OR FOR
WHOM AN APPLICATION TO PREPAY THE INHERITANCE TAX WAS FILED UNDER
§ 7-219 OF THIS SUBTITLE AND IF THE INHERITANCE TAX DETERMINED
UNDER THE PREPAYMENT APPLICATION WAS PAID:

(I)  THE SUBSEQUENT INTEREST SHALL BE REVALUED
WHEN IT VESTS IN POSSESSION; AND

(II)  THE INHERITANCE TAX DUE ON THE SUBSEQUENT
INTEREST SHALL BE REDETERMINED BASED ON THE VALUE OF THE INTEREST
WHEN IT VESTS IN POSSESSION AND ON THE RELATIONSHIP OF THE
ORIGINAL DECEDENT TO THE PERSON IN WHOM THE INTEREST ULTIMATELY
VESTS IN POSSESSION.

(2)  A DEDUCTION FROM THE INHERITANCE TAX CALCULATED
UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION FOR PREPAID
INHERITANCE TAX ON THE INTEREST SHALL BE ALLOWED.

(C)  IF NO APPLICATION TO PREPAY TAX IS FILED OR NO TAX
PAID.

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