4.2 ENCUMBRANCES-ESTATE (INHERITANCE) TAX
Problem A: Is a decedent's real property divested of the lien of the state estate (inheritance) tax by a conveyance by an executor acting pursuant to a testamentary power of sale?
Standard A: No, if decedent died prior to April 1, 1972; yes, if decedent died on or after that date, provided the conveyance is to a bona fide purchaser for an adequate consideration.
Comment A: As to the estates of persons who died prior to April 1, 1972, there is not sufficient authority to justify omission of the lien from the title report. As to the estates of persons dying on or after that date, see R.C. Sec. 5731.37(A)(2), as amended, effective April 1, 1972. The lien is divested generally after ten years from the date of decedent's death. R.C. 5731.171 (Inheritance Tax); R.C. Sec. 5731.38 (Estate Tax).
(Effective as amended November 11, 1972; originally effective May 21, 1953 and amended at various times)
Problem B: Should a title be considered unmarketable in the hands of a purchaser, encumbrancer or lessee for value, as disclosed by the record, whose grantor acquired title by gift, the donor of which gift survived the gift, if made prior to July 1, 1968 (R.C. Sec. 5731.04, Inheritance Tax), by more than two years; and, if made after June 30, 1968 (R.C. Sec. 5731.05, Estate Tax), by more than three years?
Standard B: No.
(Effective as amended November 13, 1971; originally effective November 16, 1957)