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  72 .01 I NH ERITAN CE, ESTATE AN D GIFT TAX                                                                                                 2032

                                                           CHAPTER 72
                                    INHERITANCE , ESTATE AND GIFT TAX
                           SUBCHAP' 7 ERI                                 7229 .         Assets o f decedents.
                    GENE RA L. PR OVISIONS                                7230          Determina tio n o f tax
  72 , 01   Defini t ion s .                                              72 31         Spec i al a dmini s tratio n
 '12 .03    No tice.                                                      7 2:33        Adju s tments .
  7205      Rules a nd f'o r'm s .                                        7234           Inher i tance tax co unsel ; i n ves ti gation s .
 '7206      Confiden ti ality of tax retu r ns                            7 2 35        Interstate arbitration of death tax es .
 72 07      Statu s of ad opted p ersons .                                                             SUBCHAPTER III
                          SUBCHAPTER II                                                                  ESTATE TAX
                       INHERITANCE TAX                                    72 60          Pu rpo se . .
 72 . 1     Subj ects lia ble                                             72 61          Es tate t ax impo sed .
 72 . 12    T rans fers l i able ,
 72 13      Impo si tion o f tax .                                        7262           Liability and lien .
.72 14      Deduction s .                                                 72 63          When paya ble. .
 72 15      Tran s fer s e xempted fro m thi s tax ; reciprocity in       '72 ..64       Othe r p rovis i o n s a ppli ca ble .
                exemptio ns .                                                                          SUBCHAPTER IV
72 ] 6      Classification of distributees                                                                 GIFT TAX
72. 17      Exempti on s,                                                  '72..'75       Transfers taxab le . .
72 ' 18     Rates:                                                           72 76      ` Genera l e xempti o n s:.
72. 19      Ra te lim i t .                                                72 ' 77        Imposition of tax
7220        Inherita nce tax credit                                        ' 72. . 78     Amount taxed . .
72 , 21     Persona l liab i lity                                          7279           V aluation .
72 22       Pay ment . .                                                   ' )2 . 80      Clas sification of done es
72 , 23     Interest ,                                                     22 81          Annu al exemption : ;
72 24       R e fund i ng.                                                `72 .. 82       Personal exempti ons
7225-       Release or : tran sfer of lien .                             '.7283           Rates '..
7226        B equest to a pers o nal repres enta tive or tru stee for      72 84          R ate lim it
                 sel vices                                                 72 .. 85 :     Filing r eturns and pa ym e nt o f t he tax.
72 27       Jurisdiction of circuit cour t                                 '72 .. 86      Enforcement and co ll ectio n
7228        Valuation . .                                                   7787          Re lationship betwee n sub c hapter s II, III, and IV .

  Revisoi's Note: Chapter 310 , law s of 1 97 1 , whi ch r epealed          (9m) "District attorney" means the district
and rec rea ted ch 72 , s la ts , co ntain s exten si ve legis lati ve
counc il notes Sloe also previous edit i on s of the statute s ..        attorney of'the county whose circuit court has
                                                                         ,jurisdiction under s 72 . .27 .
                     SUBCHAPTERI                                            (10) "Donor'' ; "donee" and "person" in-
                                                                         clude all partnerships, associations, corpora-
              GENERAL PROVISIONS                                         tions andd municipalities : . .
                                                                            (11) "Estate" means all property of a dece-
72 .01 Definitions. In this chapter, unless                              dent transferred to distributees by reason of his
otherwise specified :                                                    death ..
   (1) "Administration" means any proceeding                                (12) A "gift" is a completed transfer when the
relating to a decedent's estate whether decedent                         donor has divested himself' of all beneficial
died testate or intestate . .                                            interest in the property transferred and has no
   (3) "Child" includes a legally adopted child                          power to revest any interest in that property in
and a mutually acknowledged child ..                                     himself or his estate ..
   (4) " Circuit court" means the circuit court                             (13) "The intestate laws of'this state" include
which has jurisdiction under s . 72 .. 27 . .                            statutory rights and allowances to a child and to
   (6) " Death tax " is a tax imposed by a state ,                       a surviving spouse and any other rights of a
territory or district, because of 'a death or gift in                    surviving spouse acquired by contract in lieu of
contemplation of" death , on property ar' a trans-                       any statuto r y r i ghts .
fer of property, and includes estate , inheritance ,                       NOTE: Sub.. (13) is shown a s affected by 1983 Wis. . Act
succession , legacy and transfer taxes ..                                186, elf, 1 - 1 -86.. Prior to 1-1-86 , sub.. (13) reads:
                                                                             "( 13) `The inte state laws of this state' includ e a surv iving
   (7) "Decedent" means the deceased person .
                                                                         spou se 's right to dower, statutory rights and allowance s to a
   (8) "Department" means the depa rtment of                             child and to a s urv iving spouse and an y other' rights of a surviv-
revenue                                                                  ing spouse acquire d b y contract in lieu of dower or other s tatu-
                                                                         tory rights.."
   (9) "Distributee" means any person to whom
property is transferred by reason of a death or                             (14) " M unicipality" means a county, city,
in contemplation of death other than in pay-                             town, village, school district, regional planning
ment of a claim ,.                                                       commission, or any public agency thereof' .
                                             Electronically scanned images of the published statutes.
2033                                                          I NHERITANCE , ESTATE AND GIFT TAX 72 .1 2

   (15) " Mutually acknowledged child" is a                                             SUBCHAPTER II
person to whom a decedent or donor stood in a
mutually acknowledged relationship of ' a parent                                     INHERITANCE TAX
commencing prior to the child ' s 16th birthday
and continuing for a minimum of 5 year s or a                         72 . 11 Subjects liable . (1) RESIDENTS AND
shorter period only if that shorter period imme-                      NONRESIDENTS A tax is imposed upon any
diately preceded the decedent ' s death . .                           transfer of property to any distributee in the
   (15m) " Mutually acknowledged parent " is a                        following cases :
person with whom a decedent or donor "stood in                           (a) When the transf'ex is from a person who
a mutually acknowledged relationship of his or                        dies while a resident of this state .
her child commencing prior to the decedent ' s or                        (b) When the transfer is of property within
donor's 16th birthday and continuing for a                            the jurisdiction of this state and the decedent
minimum of 5 years , or a shorte r period only if                     wass not a resident of this state at the time of his
that 'shorter period immediately preceded the                         death .. .
decedent 's death ..                                                     (2 ) EXCEPT ION ; RECIPROCITY AS TO NONRESI-
   (16) " Personal representative " means any                         DENT DECEDENTS . A transfer, which is made tax-
person to whom ` letters to administer a dece-                        able under this subchapter and is of a nonresi-
dent's estate have been granted by the court but                      dent decedent's intangible personal property is
does not include a special administrator .                            not subject to the -tax imposed by this sub-
   (17) "Power of appointment" means any                              chapter if a like exemption is allowed at the time
general power to appoint, as defined by section                       of the death of the decedent by the laws of the
2041 (relating to estate taxes) or 2514 (relating                     state, territory or district of'the decedent's resi-
to gift taxes) of ' the 1954 internal revenue code ,                  dence in favor of residents of this state . This
as amended to December 31 , 1983 .                                    subsection does not apply unless a tax is im-
                                                                      posed on the transfer of the decedent's property
   (19) "Property" means any interest, legal or
                                                                      by the laws of the state, territory or district of
equitable , present or future, in real or personal
property , or income therefrom, in possession                         the decedent's residence
                                                                       Hi s tory : 1971 c 307, 3 1 0 ; 1973 'c . 90 .
and enjoyment, trust or otherwise, within or                           Th e new in heritance, estate and gift tax law . Boykoff, 56
without this state .                                                  ML R 453
                                                                         1 973 changes in the inheritance and gift tax l aws .
   (21) "Transfer" means the passing of                               Boykoff, 1973 W BB No 5
property .
    History: 1971 c 310 ; 1973 c . 90; 1977 c 187 s . 135 ; 1977
c . 418 ; 1977 c 449 ss . 181, . 499; 198 1. c 20, 317; 1983 a. 27,   72. 12 Transfers liable . A tax is imposed upon
186, 189,212 .                                                        any transfer to any distributee in the following
                                                                      cases :
72 ..03 Notice . Unless otherwise provided,                              (1) TRANSFER      BY WILL      When the transfer is
where' "notice" is required in this chapter' it                       by a will,
shall be given in the manner prescribed by s .                           ( 2) TR ANSFER UNDER INTESTATE LAWS . . When
879 05                                                                the transfer is under the intestate laws of this
  History:    1 971 c 310
                                                                      state or of any other jurisdiction
                                                                         ( 3)   T RANS F E R OF ALLOWAN CES         TO FAMILY ,
72 . 05 Rules and forms . The department may                          When the transfer is made under subch II of ch
make rules and prescribe forms required to                            861, to the extent not subject to income tax . .
compute, assess and collect taxes imposed by
                                                                         ( 4) TR ANSFER I N CONTEMPLATION OF DEATH OR
this chapter .                                                        TO TAKE EFFECT AF T E R DEATH, (a) Transfer in
  His tory : 1971 c 310 .
                                                                      contemplation of`death . When the transfer is
                                                                      made in contemplation of the death of the
72 . 06 Confidentiality of tax returns . Section
                                                                      transferor . Every transfer of property compos-
71 11 (44) (a) and (c) to (h) applies to any
                                                                      ing a material part of the transferor's estate,
information obtained from any person by the
                                                                      made within 2 years prior to the death of the
department on an inheritance or estate tax
                                                                      transferor or in the nature of a final disposition
return, ;teporC, schedule, exhibit or other-docu-
                                                                      or distribution, and without adequate and full
ment or from an audit report pertaining to the
                                                                      consideration in money or money's worth, shall
tax return .
  Histor y : 1979c 139,221                                            be deemed made in contemplation of death
                                                                      within the meaning of this subchapter, unless
72 .07 Status of adopted persons ,. For pur-                          shown to the contrary, '
poses of this chapter, the relationship between a                        (b) Transfer to take effect after death When
legally adopted person and any person is gov-                         a transfer is made without adequate and full
erned by s 85] 51                                                     consideration in money or money's worth and is
  History: 1971 c . 310 :                                             intended to take effect in possession or enjoy=
                                        Electronically scanned images of the published statutes.
72 . 12 INHERITANCE , ESTATE AND GIFT TAX                                                                                      2034

ment at or after the death of the transferor,             2 Money which is invested or deposited in a
including any transfer where the transferor has        financial organization, as defined in s . 71 .07(2)
retained forhis life or' for any period not ending     (d) 1, and the clear market value of property
before his death :                                     which is acquired or placed in the names of '2 or
   1 . The possession or enjoyment of , or the         more persons with the right of survivorship if
right to the income from , or to economic benefit      the establishment of such survivorship interest
from , the property ; or                               is not subject to gi ft tax under subch . IV because
                                                       it is an incomplete transfer, upon the death of
   2 . The right , either alone or in conjunction
with any person, to alter , amend , revoke or          one such pe r son, an amount equal to the prop-
terminate the transferoc to designate the bene-        erty's cl ear market value multiplied by a fiac-
ficiary who shall possess or enjoy the property,       tion, the numerator of which is the money or
                                                       money's worth contributed` by the surviving
or the income, or economic benefit fr om it .
                                                       tenant or tenants and the denominato r of which
    (c) Death benefits 1 . Benefits paid to a
                                                       is the money or money's worth contributed by
beneficiary under an employe benefit plan are
taxable under this subchapter except to the            all joint tenants including the decedent . .
extent that the proportionate share resulting             (c) . Application of exclusion . The amount
fr om the employer's contribution would be             determined in par (b) shall be subtracted from
excludable f r om the gross estate of the decedent     the amount determined under par ... (a) prior to
under ' section 2039 of' the 1954 internal revenue     application of the tax rates under s . 72 . . 1 8 .. The
code as amended to December 31, 1983 .. This           tax rates shall be applied to the balance of
subsection applies whether or not there is a
           n                                           prope r ty, the transfer of which is taxable under
requirement for filing a federal estate tax return .   this subchapter, beginning at the tax rate appli-
                                                       cable to the bracket in whichh the exemptions
   2 . No tax is imposed by this chapter upon the
transfer of benefits or any right or interest in       end .
                                                          (7) INSURANCE, When insurance, except in-
benefits payable to ' a decedent's estate or dis-
                                                       surance returnab le for income taxation and
tributee under:
                                                       insurance under s 72,13 (2), is payab le upon the
   a . Any employe retirement plan of ' the United
                                                       death of any person and ..anyy of the legal inci-
States , state of Wi sconsin or Wisconsin munici-
                                                       dents of ownersh ip remain in that person at the
pality ; or
                                                       time of death Such t r ansfer shall be taxable to
   b Any social secu r ity lump sum death benefit      the person entitled thereto, irrespective of the
payable to a decedent' s surviving spouse under
                                                       source of the premium payments . I n this sub-
42 U . S . C . s 402 (i)                               section "legal- incidents of ownership" in an
   (5) TRANSFER UNDER POWER OF APPOINTMENT,            insurance policy means the right of the insured
When the transfer results from the possession ,        or the insured's estate to its economic benefits
exercise or release of 'a power: of appointment ,      or the power of the insured to change the
including the exercise of a power of appoint-          beneficiary, to surrender or cancel the po licy, to
ment by the creation of another power of ap-           assign it, to revoke an assignment, to pledge the
pointment , in a manner which is taxable under         policy for a loan or to obtain from the insurer a
section 2041 of the internal revenue code , as
                             e                         loann against the policy's surrender value ..
de f ined i n s . '7 1 .. 02 (2) ( b),                      History: 197 1 c . 310 ; 1 973 c. 90 ; 1 97 5 c 222, 331 ; 1 977 c .
                                                       418; 1 979 c 1, 176 ; .198 1 c 20, 93, 317; 1 983 a 27 ; ] 983 a 1 89
   (6) SURVIVORSHIP INTERESTS . (a) Genera/pro-        s . 329 (10) ; 1983 a . 212; 1 983 a . 5 44 s . 47 (1) .
 vision, When property is held in the names of 2            Under 72. 01 ( 5), Stars 1 969 , a taxab le tran s fer was ef-
or more persons.s with the right of survivorship
         e                     h                       fected where a W iscon sin resident died p ossessed of a power
                                                       o f appointment over i nta ngi ble asset s of an irrevoca b le tr ust
but not as tenants in common, Upon the death           administered in Illinoi s b y an Illino i s tru s tee, which power
of one joint tenant, the right of the surviving
               t                                       s he li mited volunt arily i n her l if eti me dur in g wh ich she re-
,joint tenant or' tenants to the immediate owner-      ceived one ha lf of the i n co me of the tru s t a s benefic ia ry bu t
                                                       without, elect ing to exercise her self-limited power ther eby
ship or possession and enjoyment of such prop-         caused he t rust asset s t o be distributed to her children a c-
erty shall be deemed a transfer taxable under          cording to the settlor's plan in such ev e nt . Estat e of Mueller,
                                                       47 W (2d) 336 , 1 7 7 NW (2d) 60 .'
this subchapter at the property' s clear market              Where tes tato r created a mar ital tru st for his w ife and a
value .                                                residuary trust fo r h is children , any intentio n th at the t ax on
                                                       both trusts be paid by the residuary must be expres sed in
   (b) Joint tenancy exclusion. When property is       cle ar lan guage and cannot be left to impli ca tio n : . Es t ate o f
held in the names of 2 or mote persons withthe         Bau k nec 6 t ;' 49 W (2d) 392, 182 NW (2d) 2 3 8 .
                                                             Personal serv i ces can s erve a s co nsider at ion "i n money 's
right of survivorship , the following shall be         wo rth " under (6) (b) 2 In re Estate of Ker s t e n , 7 1 W ( 2d)
subtracted as provided in par , (c) :                  7 5 7, 2 39 NW (2d) 86 .
                                                             Fact that t i tle t o tru s t a sset s w as v es ted in trustee s and n ot
   1 The fractional interest of the survivor or        i n settlor's widow mitigated strongly again s t finding of abso -
survivors in property in an amount determined          lute fee in widow. In Matter of Estate of Barr, 7,8 W ( 2d) 254,
by dividing the property's clear mar ket value by
          g                                            25 3 NW (2d) 901 .
                                                             Taxation of employe benefi t pla n s und er 1967 s la t s di s -
the number of joint tenants , including the dece-      cussed . In M atter o f Estate of Puchne r, 78 W (2d) 525 , 254
dent, except as provided in subd . 2 .                 NW (2d) 7222
                                                 Electronically scanned images of the published statutes.
 2035                                                             I N HERITAN CE, ESTATE A ND GIFT TAX 72 .15

     When j oi nt c o n tra ctua l will i s not revo k e d , pro pert y                                            x
                                                                          the extent not claimed for income tax purposes,
pas ses by will even thou gh contract woul d be se parate ly en -
force able cla im against e st ate In Matter o f Estate of, Jacobs,       paid by a distributee, trustee or other person
92 W (2d) 266, 28 4 NW (2d) 6 38 (19 79) .                                out of taxable assets not in the possession of a
     See note to 72.. 14, cit i ng In Ma tter o f Estate of Laev , 1 15
W (2d ) 1 6 8, 340 NW (2d) 223: (Ct App. 1983),                           personal representative or special administra-
     J oint bank ac count s in Wi sconsi n . O ' Fla he ity, 53 ML . R
     J                                                                    tor , are allowed to the extent that assets in the
11 8 .                                                                    possession of 'a personal representative or spe-
    Nature of c ot enancies and their taxation - death and gift. .
Sheedy, Su ll ivan, 56 ML R 31'                                           cial administrator are not sufficient to pay them
    'The t ax ati on of j oint tenancy property enacted by Ch             or to the extent that the distributee, trustee or
222, laws of 1975 Boykoff, 1976 WBB 5,
                                                                          other person is obligated to pay, or other assets
                                                                          are subject to the payment of; such expenses..
72 . 13 Imposition of tax . (1) The taxis i mposed
                                                                              (3 ) WHEN ONLY PART OF TOTAL ASSETS ARE
at the prescribed rates upon the transfer of                              WITHIN THIS sr A r E. Whenever an estate is partly
property measured by its clear market value on                            within and partly without this state , only deduc-
the date of decedent's death lesss enforceable                            tions allowed under sub . . (1) equal to the pro-
liens and the deductions and exemptions pro-                                                   e
                                                                          portion' which the property within this state
vided in this subchapter In determining the                               bears to the entire estate may be deducted .. A
taxable value of property transferred, a deduc-                           distributee is entitled only to that proportion of
tion is allowed for the amount of an enforceable                          his Wisconsin exemption equal to the propor-
lien on the property if' the distributee takes the                        tion which his interest in the property within
property subject to that lien .                                           this state bears to his entire interest in the estate . .
   (2) A lien which' is wholly or partially satis-                            ( 4) INSTALMENT PAYMENTS .. Interest attributa-
fied by payment directly to the creditor of                               ble to payments under s . 72 22 (4) is not deduct-
proceeds of an insurance policy on the dece-                              ible under' this section in the estate of the
dent's life is reduced by the amount of the                               decedent in which an election to pay under s ..
proceeds .                                                                72 .. 22 (4) was made .
   History: 1971 c .310`.                                                    History : 1971 c 310 ; 1975 c 331; 19 '79 c l t
   Beneficiary's option rights were irre levant in valuating in-             Estate's sales expenses may not be claimed as administra-
heii[ed property . In M atter of Estate of Irish, 89 W (2d) 148,          tive expense deductions under (I) (c) when they have already
277 NW,(2d) 872 ( 1 979).                                                 been used as a setoff against capital gains tax owed by estate .
                                                                          In Matter of Estate of Haase, 81 W (2d) 705, 260 NW (2d)
72 .14 ., Deductions . (1) EXPENDITURES BY A                              809 .
                                                                              Where divorce judgment required decedent to maintain
PERSONA L REPRESENTATIVE, SPECIAL ADMINIS-                                $200,000 of life insurance payable to children, proceeds con-
                                                                          stituted deductible debt to decedent's taxable estate. In Mat-
                                                                          ter of Estate of Laev, 115 W (2d) 168, 340 NW (2d) 223 (Ct
TAIN A SS ETS I N HIS POS SESS ION, Deductions for                        App . 1983)
the followingexpenditures made by the per-
sonal representative or special administrator                             72 . 15 Transfers exempted from this tax ; rec-
out of the assets of the decedent in his posses-                          iprocity in exemptions . (1) (a) All transfers to
sion or advanced, or paid by a distributee of'any                         the following are exempt from the tax imposed
assets in his possession are allowed : .                                  by this subchapter :
   (a) Debts of the decedent, including medical                              1 The United States or any state or political
expenses and expenses of' last illness to the                             subdivision thereof'strictly for a public purpose ;
extent not claimed for income tax purposes .                                 2 . Corporations, trusts, voluntary associa-
   (b) Reasonable funeral and burial expenses ..                          tions or foundations organized and operated
   (c) Expenses of administration to the extent                           exclusively for religious, humane, charitable,
not claimedd for: income tax purposes .                                   scientific or educational purposes ;
   (d) IYknown, real estate taxes accrued during                             3 : Any corporation, organization, associa-
the year of the decedent's death, or if such taxes                        tion or foundation in trust for the direct finan-
are not known, an amount equal to one-twelfth                             cial benefit of any municipality ;
of the taxes assessed against the land for the                               4' Any national organization of veterans of
preceding calendarr year multiplied by the                                the U.S, armed forces or a subordinate unit
number of months in the calendar year which                               thereof;
elapsed prior to the date of death, including the                            5. Banks or trust companies of this state, or
month of death if the death occurred after the                            to individuals residing in this state, or to frater-
15th day . Deductions allowed under this para-                            nal societies organized under ch . 188, as trust-
graph shall be considered a, lien against the                             ees, in trust exclusively for the purposes speci-
subject real estate reducing its market value .                           fied in subds . 1 and 2 .
   (e)The estate tax as finally determined by the                            (b) The exemptions granted in par, (a) extend
U S, government .                                                         to transfers to organizations located in or orga-
   (2) , E X PEN DIT URE S BY CERTAIN DISTRIBUTEES                        nized or established under the laws of any other
OUT OF CERTAIN TAXABLE AS SETS IN THEIR POSSES-                           state, territory or, district, exclusively for pur-
SION Deductions for the expenses in sub, (1), to                          poses specified in par, (a) 1 and 2, including
                                                Electronically scanned images of the published statutes.
 72.15 INHERITANCE, ESTATE AND GIFT TAX                                                                                        2036

institutions maintained by the state , territory or                  (4) Class D consists of all distributees in any
district itself , if the law of that political unit on            other degree of collateral consanguinity to the
the date of the decedent ' s death granted a like                 decedent than stated above, strangers in blood
and equal exemption to similar transfers by its                   and other persons, but does not include a sur-
residents to or for the use of an organization of                 viving spouse..
similar character and purpose operating princi-                      Hi s tory : 1971 c 310 ; 1 977 c 418 ; 1981 c 93 ; 1983 a 1 86
pally in this state .                                                NOTE: Sub.. ( 4) is shown as affected b y 1983 Wi s .. Act 186 ,
                                                                  eti:, 1 - 1 -86, which adds the phrase "but does n ot include a sur-
   (2) No tax is imposed upon the transfer of                     viving spouse" . .
any real property or tangible personal property
of' a re s ident decedent when the property is                    72.17 Exemptions . Exemptions from the tax ,
located outside the jurisdiction of this state and                to be applied against the lowest bracket or
when a state death tax in the state where located                 brackets, are allowed as follows
has actually been paid .. Such tangible personal                      (1) To class A distributees , property of a clear
property must not be outside the jurisdiction of                  market value of $10, 000 in respect to transfers
this state temporarily nor for the sole purpose                   because of deaths occurring before April 13 ,
of deposit or safekeeping .                                         1984; property of a clear market value of
     (3) In the event of a disclaimer under ' s .                 $25,000 in respect to transfers because of deaths
853 . . 40 , the transfer ` from the decedent shall be
               e                                                  occurring on April 13 , 1984, and thereafter' to
taxed to the distributee taking as a result of the                . June 30 , 1985 ; and property of a clear market
disclaimer .                                                      value of $50,000 in respect to transfers because
     (4) No tax is imposed on the transfer of the                 of deaths occurring on July 1 , 1985 , and
first $10,000 of the aggregated clear market                      thereafter ;
value of household furniture, furnishings and                         (2) To class B and class C distributees , prop-
appliances and other tangible personal prop-                      erty of a clear market value of $1 , 000; and
erty, except money , otherwise taxable under s .                      (3) To class D distributees, property of a
72 .. 12. . This exception shall be in addition to all            clear mar ket value : of $500 .
other exemptions and allowances .                                     (4) In addition to the exemptions allowed by
    (5) Any transfer to a surviving spouse is                     subs . (1) to (3) :
exempt from the tax imposed by this                                                           d
                                                                      (a) For, the care and maintenance of the
subchapter                                                        burial lot of the deceased , property of a clear    r
   History: 1971 c 310; 19 ' 75 c 331 ; 1977 c .309, 418 ; 1979   mar ket v alue of $5 00 . .
c1 ;1981c9.3 .                                                       (b) To the cemete r y in which the deceased is
   Cross Reference : See 613 . 81 for exemption of transfers to   buried, property of a clear market value of
hospital service insurance corporations .
   Trusts aye not necessarily disqualified under this section     $$00 .
because relatives of settlor may become beneficiaries: In            (c) For the performance of a religious pur-
Matter of Estate of Frautschy, 84 W (2d) 644, 267 NW (2d)         pose or service for or' in behalf' of the deceased
300 (1978)
                                                                  or for or in behalf of any person named in his
                                                                  will , property of a clear market value of $1 , 000. .
72. 16 Classification of distributees. In deter-                     History: 1971 c 310 ; 1979 c 1 ; 1981 a 93 ; 1983 a 194
mining the amount of tax due under this sub-                         Exemption under this section applies against the ]owes[
chapter, distributees are classified as follows :                 bracket of tax rate . In Matter of Estate of Walker, 75 W (2d)
                                                                  93, 248 NW (2d) 4 : 10
   (1) Class A consists of distributees in the
 following relationships to the decedent: lineal                  72 .18 Rates . When property is tcansf'ecred by
issue, lineal ancestor, wife or widow of a son, or                reason of' a death to or for the use of a distribu-
husband or widower of a daughter For the                          tee, a tax i s imposed at the following rates :
purpose of this classification, a mutually ac-                       (1) Class A distributees are taxed upon the
knowledged child, her or his spouse and issue,                    balance , if ' any, of the first $25,000 over the
shall be treated the same as a natural child, her                 exemption at 2 :5% ; upon property which ex-
or his spouse and issue and a mutually acknowl-                   ceeds $25, 000 and does not exceed $50 , 000, at
edged parent shall be treated the same" as a                      5% ; upon property which exceeds $50,000 and
natural parent.                                                   does not exceed $100,000, at 7 . 5% ; upon prop-
   (2) Class B consists of distributees in the                    erty which exceeds $100,000 and does not ex-
following relationships to the decedent :                         ceed $500,000, at 10% ; and upon property
brother, sister or a descendant of'the brother or                 which exceeds $500,000, at 1 2 ;5% . Th e per -
sister .                                                          sonal exemption applies against the lowest
   (3) Class C consists of distributees in the                    bracket ..
following relationships to the decedent : brother                    (2) Class B distributees are taxed upon the
or sister of'the father or, mother, or a descendant               balance of 'the first $25 , 000 over the exemption
of the brother or sister of'the father or mother,                 at 5% ; upon property which exceeds $25 , 000
                                          Electronically scanned images of the published statutes.
 2 03 7                                             I N HERITANCE, ESTATE AND GIFT TAX 72 .22

 and does not exceed $50,000, at 10% ; upon              shall be apportioned among the children in the
 property which exceeds $50 , 000 and does not           ratio of ' each child's tax before credit to the total
 exceed $100,000, at 1S% ; upon property which           tax of all the children before credit . .
 exceeds $100, 000 and does not exceed $500 , 000 ,         (5) In computing time under this section ,
 at 20% ; and upon property which exceeds                decedent's date of death is excluded
 $500,000 , at 25% .                                        (6) A child of' a deceased child of the decedent
    (3) Class C distributees are taxed upon the          who takes by representation is entitled to the
 balance ofthe first $25 , 000 over the exemption        credit which would have been allowed to his
 at 7 . 5% ; upon property which exceeds $25 , 000       deceased parent . .' Where there is more than one
 and does not exceed $50,000, at 15% ; upon              child, the total of credit allowed shall not exceed
 property which exceeds $50 , 000 and does not           the amount which would have been allowed to
 exceed $100 , 000 , at 22 .. 5% ; upon property         their deceased parent ,
 which exceeds $100 ,000, at 30% .                         History:   1971 c 310.
   (4) Class D distributees are taxed upon the
 balance ofthe first $25,000 over the exemption         72 .21 Personal liability .. (1) Each personal
 at 10% ; upon .n property which exceeds $25,000        representative, special administrator, and
 and, does not exceed $50,000, at 20 % ; upon           trustee of" a trust in existence and containing
 property which exceeds $50 , 000 , at 30%              property on the date ofthe decedent ' s death , is
   History: . 1971 c 310 ; 1973 c 90 ; 1981 c 93
                                               3        seve r ally liable for the tax imposed by this
                                                        subchapter , with interest , to the extent of' the
72 .19 Rate limit . The tax imposed by this             clear market value of all property under his
subchapterr shall not exceed 20% of the clear           control, the transfer of which is subject to this
market value of property transferred to any             tax . . This liability extends to all taxes due under
distributee :                                           this subchapter on all transfers to a distributes,
   Hi story : ; 1971 c 3 1 0.                           and is not limited to the value of transfers of
                                                        property in the control of the personal - repre-
72.20 Inheritance tax credit . (1 ) The child of a      sentative , special administrator or trustee . .
decedent shall be allowed a credit based on the            (2) A trustee of a trust which comes into
tax paid by the decedent's surviving spouse, if :       existence after the decedent's death and a dis-
   (a) The surviving spouse received property           tributee are liable for the tax imposed by this
 from the decedent which was transferred by or          subchapter ; with interest, only to the extent of
 from suchh surviving spouse to the child ; and         the clear market value of property transferred
    (b) The, surviving spouse survived the dece-        to him ..
 dent for a period not exceeding 6 years .                 (3) This section does not apply with respect
   (2) For purposes of this section, credit shall       to taxes due under this subchapter on transfers
 be computed as follows : that share ofthe estate       to a distributes who has elected to pay the taxes
received by the spouse reduced by the value of          under s 72,22 (4) .
all life interests included in this share over the        Histox yh 1971 c 310; 1979 c. I
total value of the estate passed by the spouse
increased by the value of all gifts by the spouse       72 .22 Payment. (1) WHEN PAYABLE The tax
after the death of the decedent, times the chil-        imposed by this subchapter is due and payable
dren's share of"the estate of the spouse over the       at the time of the decedent's death .
total distributable value of the estate of` the            (2) ADVANCE PAYMENT . Anyone personally
spouse, times the tax the child would pay on the        liable for, a tax under this subchapter may pay
estate of the spouse before the credit .                an estimated tax before the tax is determined .
   (3) The portion of the credit which is allowa-          (3) PAYMENT Payments must be made to the
ble is as follows :                                     department . . Except as provided in sub, (4), full
   (a) 100% if'the surviving spouse died within 3       payment shall accompany the inheritance tax
years immediately succeeding decedent's death ;         return . If a prepayment was made, any addi-
   (b) 75% if the surviving spouse died in the          tional tax shown owing on the return, as filed,
4th year after decedent's death;                        shall accompany the return
   (c) 50% if the surviving spouse died in the 5th         (4) INSTALMENT PAYMENT'S; (a) Whether or
year after decedent's death ; or                        not there is a federal estate tax liability ; ifthe
   (d) 25% if the surviving spouse died in the          estate would be authorized to pay federal estate
6th year after decedent's death:                        taxes under section 6166 of the internal revenue
   (4) ' The credit allowed by this section shall       code, as amended to December 31, 1983, in lieu
not exceed the amount' of tax paid by the               of full payment, payment may be made accord-
surviving spouse on the transfer of property            ing to an equal payment schedule over a period
because of' decedent's death.. Where there is           not to exceed 15 years from the decedent's date
mote than one child, the'total credit allowable         of death . If an election is made under this
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 72 .22 INHERITANCE, ESTATE AND G I FT TAX                                                                             2038

  subsection, the election shall apply only to the       department may proceed to collect the payment
 portion of the tax payable by a distributee             or the entire unpaid balance of the taxes , costs
 which is determined by dividing the value of            and interest..
 property received by a distributee which quali-
                    d                                       History: 1971 c 310 ; 1973 c 90; 1979 c . 1, 34, 221 ; 1981
                                                         c 20, 317; 1983 a , 27, 212, 248 .
 fies an estate for the election under the internal
 revenue code by the value of all property re-
                                                         72 . 23 Interest. (1) RATE If the tax imposed by
 ceived by the distxibutee A distributee electing
                                                         this subchapter is not paid within one year of
 to pay under this subsection may subsequently
                                                         the decedent's date of death, interest is due and
 pay part or all of the remaining tax plus , interest
                                                         payable at the rate of 12% per year from date of
 at the time any scheduled payment i s due under
                                                         death . In computing time under this section,
 this subsection . Interest on instalment pay-
                                                         the day of death is excluded .
 ments under this subsection shall be computed
                                                            (2) INTEREST MAY BE WAIVED . The department
 under s . 72,23 at 12% per year .
                                                         or circuit court may waive interest on any
     (b) If the tax due under this subchapter and
                                                         additional tax arising from the discovery of
 subch . III has not been finally determined ,
                                                         property which was omitted in the original
 payment of an estimated tax may be made   y
                                                         determination of tax . . This subsection applies
 under this subsection on the same basis as a
                                                         only where due diligence has been exercised in
 determined tax . . Upon final determination of
                                                         marshaling the assets . .
 the tax, the difference between the estimated             Hi story: 1971 c 310; 1973 c 90; 1977 c 29 ; 19'7'7 c 449 s
 and determined tax and interest may be equally          497 : 1981 c . 20
 allocated to the remaining payment periods .
     (c) Any distributee electing to pay under this      72:24 Refunding . Whenever any amount has
 subsection shall , ; within one year of the dece-       been paid in excess of the tax determined , the
 dent ' s date of" death ,_ file written notice of the   state treasurer , upon certification by the depart-
 election with the department and with the per-          ment or circuit court, shall refund the excess to
 son required to file the inheritance tax return .       the payor or other person entitled thereto.
 Any distributee who fails to give notice under            History : 19 '77 x 310 ; 19 '73 c 90 ; 19'7 :7 c . 449 s 49 7.
 this paragraph shall make full payment as re-
 quired under sub .. (3) .                               72 . 25 Release or transfer of lien . Until this
     (d) Upon the filing of a notice under par . (c),    tax is paid it is a lien upon the property trans-
 distributees of real estate shall provide the de-       ferred except :
partment a certified copy of 'a lien for unpaid              (1) When the department is satisfied that
taxes and interest on the property to secure             collection of the tax will not be jeopardized, it
payment , recorded in the office of the register of      may release this lien on all or part of the
deeds of the county in which the property is             property, A duly executed release of the lien
located . . Distributees of personal property,           may be recorded with the register of deeds of the
upon the filing of a notice under par . (c) , may        county in which thee property is located . The
either provide a lien or provide the department          recording fee shall . be the same as for the
a financial guarantee bond equaling the esti-            recording ofa mortgage satisfaction . .
mated xax and interest elected to be paid under             (2) The sale of any property the transfer of
this subsection to secure payment if the tax has         which is taxable under this subchapter by a
not been determined . Upon determination of              personal representative, special administrator
the tax , distributees of personal property shall        or trustee constitutes a release of the lien on that
provide a lien or provide a financial guarantee          property The lien is transferred to the sale's
bond sufficient to secure payment of the tax and         proceeds, the property passes free of that lien
interest or pay the department the excess over           and the person to whom the property is sold has
the amount of tax and interest secured by the            no liability for the tax .
bond .. The department may require security to             History : 1971 c 310 ; 1973 c . 90 ; 1983 a 248 .
cover the tax with a lien affecting only part of
the property if there is sufficient security to          72 . 26 Bequest to a personal representative
secure payment of the tax . Any distributee who          or trustee for services . If a decedent provides
fails to provide the security required under this        for a transfer to a personal representative or
paragraph , or who disposes of one-third or              trustee in lieu of other compensation or makes
more of' the property on which the tax is secured        him a distributee to an amount exceeding the
under this paragraph , shall make full payment           maximum allowable compensation, the excess
as required under sub . ( .3) .                          in value of the transfer above the maximum
    (e) Upon the failure of any distributee to           allowable compensationn is a transfer taxable
make a scheduled payment agreed to under par             under this subchapter . This subsection does not
(a) , upon the distributee's death or if the secur-      authorize the deduction of trustees' fees in-
ity provided under par ' . . (d) is ,jeopardized, the    curred in the administration of a testamentary
                                          Electronically scanned images of the published statutes.
  20 39                                                I NH ERITAN CE, ESTATE AND GIFT T AX 72 .28

  trust; such feesare not deductible in deteimin-           the internal revenue service for like
  ing the value of the net taxable transfer                 computations ..
    History: 1971 c, 310 .                                     b . If valuation cannot be established under
                                                            subd. 1 .L a , the commissioner of insurance , upon
  72.27 Jurisdiction of circuit court. (1) RES-             application of the department or circuit court ,
  iDENrs . The circuit court for the county of              shall determine the value . The commissioner's
  which the decedent died a resident has,jurisdic-          report is presumptive evidence that his or her
  tion to hear and determine all questions arising          method of computation is correct ,
  under this subchapter and to do any act autho-               2 . . . Payment. . The tax, based on the value
 rized by a circuit court in other, matters or              determined b y s ubd . 1 , is upon a t ra n sfer of a
 proceedings coming within its jurisdiction If`2            proportion of the principal of the estate equal to
 or more courts are entitled to exercise jurisdic-          its present value and not upon any income of
 tion, the court first acquiring it retains exclusive       that property produced after death , which in-
 jurisdiction .                                             come shall be subject to the income tax . The tax
    ( 2) NONRESIDENTS . The circuit court of Dane           imposed by this subchapter is due and payable
 county has jurisdiction to hear and determine              out of the property transferred without right of
 all questions relating to the determination and            recoupment from the life tenant,
 adjustment of the tax imposed by this sub-                      (d) Esta te for life or yea rs Where an estate
 chapter, if a tax appears due because of the              f'or, life or years c an be dives t e d b y the act or
 death of a nonresident decedent and in which it           omission of' the distributee , it shall be valued as
 does not otherwise appear necessary for regular           if ' there were no possibility of such divesting ,
 administration If a-nonresident dies possessed            subje ct to disclaimer und e r s . 853 40
 of real or tangible personal property located                   (e) Power of 'appointment. 1 General power ..
 within this state, the circuit court of the county         A transfer of an estate fo r life or years or of a
 in which the property is located shall have
                                                            beneficial interest in property accompanied by a
 concurrent jurisdiction with the circuit court for         general power of appointment over the remain-
 Dane county .
                                                            der is taxed to the life or term tenant or , trans-
   Hi s tory : 197 .1 c 310; 1973 c 90; 19'17 c 449,
                                                            feree of the beneficial interest as the transfer of
                                                            absolute ownership .
   . 72.28 . . . Valuation. (1) STANDARDS . (a) Home-
     stead Where a homestead consists of a single-               2 . Othe r power.. If the power is excluded
     family dwelling or . a duplex , the equalized as-      fr om the definition of 'a power of appointment ,
     sessed valuation may .y be used and appraisal          then the remainder interest subject to the power
     dispensed w i th, unless , any interested party or     is taxed in the estate of the donor of ' the power
     the department requests an appraisal                   as if the power had been exercised in favor of the
                                                           person in the restricted class in a manner that
        (b) Securi ties When a. decedent leaves any
                                                           will result in the imposition of the largest
     securities issued by a business organization,
                                                           amount of tax .. Upon the exercise, failure to
   owning property or doing business in this state
                                                           exercise or release of a power by the donee of
   or leaves any interest therein or in the assets
                                                           the power, either upon his death or during his
   thereof, all inventories, books , papers, income
                                                           lifetime, the tax in the estate of' the donor of ' the
   tax returns and records thereo f axe competent
                                                           powe r s hall be redetermined t o a cc or d with the
   evidence, and shall be made accessible to the
                                                           ultimate devolution of ' the property .. Any excess
   personal representative, special administrator ,
                                                           tax determined to have been paid shall , upon
   apprais er, department or referee designated by
                                                           application to the department , be refunded with
   the court ,, to ascertain the true value of such
                                                           interest at the legal rate to the payor or other
   securities ar interests .. The court may or dez~ any
                                                           person entitled thereto .
  inventories , books, papers and records to be
  produced in court , and may require the attend-               (2 ) COMPOSITION AGREEMENTS . (a) The de-
  ance and examination in court of any officer or          partment may enter into an agreement with the
  employe of any such business organization In             personal representative, special administrator ,
  this paragraph: "business organization" means            trustee or distributee of any property where :
  corporation, joint stock company, partnership                 1 . Remainders, expectant estates or powers
  and association ;. "securities",., includes stocks       of appointment are of such a nature that the tax
  and bonds.                                               on their transfer is not ascertainable under this
       (c) Future or limited estates . . 1 . . Method of   chapter; or
  valuation a , Determination of the value of                  2 The interest of' a distributee or trust benefi-
  every future or limited estate, income, interest         ciary is not ascertainable under this subchapter ;
  or annuity dependent upon any life or lives in           or
  being shall be based on tables designated by the            3 . A tax is clai med on the transfer of property
. department . . These tables shall be those used by       of a nonresident decedent .
                                                   Electronically scanned images of the published statutes.
7238 INHERITANCE, ESTAT E AND GI FT SAX                                                                                   2040

   (b) The department may enter such an agree-                       seating to the transfer upon the advance pay-
ment upon terms deemed equitable and expedi-                         ment of $1
ent and may grant releases of personal liability                          (3) Exc E rtioN This section does not apply to
to the personal representative, special adminis-                     any property of a partnership .
trator, trustee or distributee upon payment of                            (4)PENALTY Whoever, violates any provision
,the tax Any agreement made under this section                       of ' this section shall be liable for the tax , interest
shall be executed in triplicate, to be distributed                   and penalty impo sed by subchs . IT and III ,
as follows : one copy filed with the department ;                        (5) DEFINITION : In this section, "state" means
one copy with the .circuit court ; and one copy to                   any state, territory, district or possession of the
the personal representative, special administra-                     United States.
tor, trustee or distxibutee who is a party thereto . .                 History: 1971 c . 310 ; 1981 c 93
  History: 1971 c . .31-0 ; 1973 c '90 ; 1977 c 309, 418 ; 1 977 c
449 s 183, 497 ; 1979 c. 110 .                                         72 .$0 ' Determination of tax . (1 ) T AX DETERMI-
                                                                       NATION . The personal representative , special
72 . 29 Assets of decedents . (1) ASSETS OF                            administrator-, trustee, distributee or other per-
NONRESIDENT DECEDENTS (a) . Persons in this                            son interested shall prepare the inheritance tax
state in possession, custody or control of intan-                      return, compute the tax , if any , due under this
gible personal property of a nonresidentt dece-                        subchapter and file the original with the
dent who, on the date of his death, was a                              department :-
resident of a state which imposes a deathh tax,                          " (2) NOTICE TO DISiRTBUIEES AND TRUSTEES
may transfer the property upon receipt of an                           Not more than 10 days after filing the tax return
affidavit evidencing . the decedent's residency .                      under sub ; (1) , the personal representative , spe-
The transfer constitutes a release of any lien                         cial administrator or trUstee shall mail or de-
under Subchs, II and III,                                              liver to each distributee and trustee of a transfer
    (b) Persons in this state having possession,                       taxable under this subchaptera copy of the
custody or control oftangible personal prop-                         ' return or a statement containing the following :
erty of 'a decedent who, on the date of his death,                         (a) The date on which the return was filed ;
was not a resident of'this state, or of intangible                         (b) A list of all property received by that
personal property of a decedent who, on the                            distributee;
date of his death, was a resident of'a state which                      (c) A summary of the value of ' each item listed
does not `impose a death tax or of a foreign                         in -par . (b) ; and
country, may transfer such property only after :                         (d) The total tax resulting from the transfer
   1 . Retaining a sufficient portion to pay any                     of all items' li sted in par : (b)
tax, interest and :penalty,' imposed under                               (3) CERTIFICATE DETERMINING VALUE OF
subchs ~ IT and -III ;'or2                                           PROPERTY AND LIABILITY FOR TAX . (a) In mak-
     .. Obtaining the written consent of the de-                     ing its determination of tax due under this
partment . Whenever the department is satisfied                      su'bciiapter , the department may require infor-
that the collection of any tax on a transfer will                    mation ' regarding the methods of valuation
not be jeopardized, it may issue a certificate                       used , including those under s 72 . 28 .
consenting to 'the transfer upon the advance                            (b) Where the department and any interested
payment of $1                                                        person are unable to agree, on any issue neces-
    ( 2) A SSETS OF RESIDENT DECEDENTS . . Persons                   sary for the determination of tax under this
in this state in possession, custody or control of                   subchapter ; either may petition the circuit court
any property of 'a decedent who, on the date of                      to decide the issue .
his death, was a resident of this state, may :                          (c) Upon determination of the value of the
    (a) Transfer the property to a personal repre-                   property and the tax ; the department shall issue
sentative, special administrator, trustee, surviv-                   a dated certificate showing the amount of tax
ing spouse entitled to receive the property or an                    and any interest and penalty , or showing the
heir under s . 867 :03 and the transfer constitutes                  amount of tax and stating that payment will be
a release ofany liability under subchs . II and                      made under s , 72 22 (4)
II I ..                                                                 (d) A copy of this certificate shall be retained
    (b) Transfer the property to any other person                    by the department and the original shall be sent
only after: ,                                                        to the person filing the return :
      1 . Retaining, a sufficient portion to pay any                    (e) No circuit court proceeding held for the
tax, interest and penalty imposed under subchs .                     transfer` of property of a decedent shall be
II and III ; or                                                      completed until the original certificate deter-
   2, Obtaining the written consent of the de-                       mining the tax or determining no tax , together
partment . Whenever the department is satisfied                      with proo f that any tax h as been paid , is filed
that collection of any-tax on a transfer will not                    with the court and , if' an election has been made
be jeopardized, it may issue a certificate con-                      under s : ' 72 . . 22" (4) , until proof' is filed with the
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  2041                                                           INHERITANCE, E STATE AND GIFT TAX 72. 3 3

 court or probate registrar that security required                        (b) Administration has been completed with-
 under s 72 .22 (4) (d) has been filed with the                         out determining the tax;
 depa rtment . :                                                          (c) No tax is due and that fact has not been
     (4 ) HEARING IN CIRCUIT COURT . The attorney                       formally determined;
  general , department , district attorney or any                          (d) A certificate of survivorship, heirship or
  per son dissa t is fied ' with the apprai sal , assess -              assignment has been issued under s 867 .. 04,
  ment or determination of ' the tax due under this                     867,05 or 868 . . 05;
  subchapter may apply for a hearing before the                            (e) Assets upon the transfer of which no tax
  circuit court within 6 months from the date the                       has been paid, are discovered ; or
  certificate in sub . . (3) (c) is issued . . The applicant                            y
                                                                           (f) Property was transferred in contempla-
  must file a written notice with the court stating                     tion of the death , of the transferor and no
  thee gr ounds of the applica tion . No s tatute of                    application for the adjustment or payment of
  limitations shall run against the department in                             x
                                                                        the tax has been made within 60 days of the
 ca ses o f fraud or co llusion or where propert y i s                  transferor ' s death..
 not di sclo sed in the return .,.
                                                                           (2) PROCEDURE, (a) Prior to acting under sub . .
  `" (5) PETITIONFOR ANCILLARY PROBATE OR AN-                           (1) the special administrator shall , by certified
 CILLARY ADMINISTRATION Every petition for                                                                 e
                                                                        mail, notify the distributee of the basis of his
 ancillary probate or ancillary administration                          authority under sub.. (1) .
 shall include' a tr ue statement of all the dece-
                                                                           (b) If, within 60 days after receiving the
 dent's property in this state and its' value Upon
                                                                        notice, a distributee fails to institute the appro-
 presentation of the petition, the circuit court                       priate proceeding or file a tax return , the special
 shall order the personal representative, special
                                                                       administrator shall notify the department and
 a dministrator , t rustee or distri butee t o proceed                 institute such proceeding or file the return .,.
 under subs : (1) and (2) .                                            After the department has been so notified, . the
    (6) DETERMINATIONS PRIOR . IQ 1 947 Where                          department may file a notice of lien with the
 the court has made, prior to January 1 , 1947 , a                     r egister of deeds or clerk of courts, specifying
 determination that no tax was due or that the
                         t                                             the ,property, the transfer of which is taxable
 tax has been determined and paid , the determi-
                               d                                       under this subchapter, and the name of the
 nation is conclusive with respect to the property                     distrbutee .
which was before the court whether or not the                             (c) Costs and expenses properly incurred by a
required notice of hearing . to de termine the tax      e              special administrator shall be paid out of the
was given properly ..                                                  subject property or by the distributee thereof'.
    (7) COLLECTION . In addition to it s powers to                       History: 1971 c . 310; 1973 c 90.
collect taxes , due under this subchapter , the
department may proceed in the manner pro-             r                72 . 33 Adjustments . (1) If a federal estate tax
vided in ss : 71 .. 13 (3) and 71 .. 135 . . All payments              return is filed for the transfer of property tax-
under this subchapter or , subch. III after their                      able under subch. II or I II, the person filing the
due date shall be applied first in discharging                         return required by s . 72 30 (1) shall attach a
costs and interest and the balance applied on                          copy of the federal return, togetherr with a copy
the tax principal .
   e x                                                                 of the closing letter, if available,, and proof' of
   History: . 1971 c . 310 ; 1973 c . 90; 1975 c 41 s 52 ; 197 5 c .   payment . .
331 ; 1977 c . 449 s . 497; 1979 c I
                                                                           (2) If the amount of the federal estate tax
   Sub (4) did not bar court review of tax dispute which
arose more than 6 months after tax certificate was issued..            initially paid is subsequently increased or de-
Department must issue certificate under (3) (c) each time tax          creased the person entitled to the refund or
determination is made on amended return . In Matter of Es-
tate of Halsted, 1(b W (2d) 23, 341 NW (2d) 389 (1983)                 liable-for the additional tax under subch . II or
                                                                       II I shall, within 30 days:
72.31 Special administration . (1) WHEN EX-                                (a) Submit to the department copies of any
ERCISED When no administr ation pr oceeding                            additional papers or supporting documents re-
has been commenced or no complete tax return                           quired to be filed with the federal government . .
h as been filed, a n y pers on , including the depart-                     (b) Compute the amount of any refund or
ment, interested in the property, the transfer of                      additional tax and report .t the same to the de-
which is subject to tax under subchs II and III,                       par tment, together with any additional tax due ..
may petition fo r appointment of a special ad-                             (3) Any refund which the department finds
ministrator with powers to determine the tax, if :                     due shall be made within 30 days after receipt of
   (a) No petition for administration of prop-                         the report under sub., (2) (b) .
city o f a decedent is, made within 60 day s after                         (4) No valuation, or, other substantive issue
deced e nt 's dea th and the prope rt y' s tra nsfer                   upon which the department has issued its certif-
appears to be taxable under subch : II or III ;                        icate may be reopened more than 6 months after
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72 .33 I NHER ITANC E, ESTATE AND GIF T TAX                                                                              2042

the date of' the certificate except with the mutual               report thereon and the department consents to
consent of' the department and taxpayer .                         such compounding, compromisee or settlement ..
  History: , 1971 c . 310; 1975c 41 s . 5,2; 1975c 331 ; 19,79c      (6) (a) Every person, or'der' or society trans-
                                                                  acting life, accident, fraternal, mutual benefit or
                                                                  death benefit insurance business within, this
72 .34 Inheritance tax counsel ; -investiga-                      state, who shall pay any insurance or death
tions . (1) (a) The department shall supervise the                benefit in excess of $1,500 upon the death of a
administration of the tax imposed by this sub-                    resident of this state, shall givee notice of such
chapter and shall investigate and cause to be                     payment to the depaztment within 10 days from
investigated the administration of this tax and                   the date of such payment . .
the transfers to which these laws apply The                          (b) Every person liable for paying benefits to
depa r tment shall make and file in its offices                   the estate or a beneficiary of a deceased em,
reports of' sueh investigations and specific infor-               ploye or former employe in the form of an
mation and facts requir ing special considera-                    annuity, bonus, pension or other benefit under
tion by the department of justice                                 a retirement, deferred compensation or profit-
    (b) Whenever necessary, the department of                     sharing plan taxable under this subchapter,
revenue may employ accountants ; appraisers or                    directly or through a trust or fund created by
other special assistants including counsel in                     the employer for such purpose, shall give notice
appraising or determining the value of property                   of'such obligation to the department within 30
transferred . Upon certification of the depart-                   days following the date of'payment, or the date
ment, : the state treasurer shall issue payment to                of the initial payment f'more than one payment
such persons                                                      is forthcoming,, to the estate or any beneficiary
    (2) The department shall appoint an inheri-                   of such employe or former employe
tance tax counsel who shall have charge of ' the                    His tory : 1971 c . 310; 1973 c. 90; 1977 c 20,449
inheritance tax work under the department ' s
supervi sion and shall be provided with further '                 72. 35 Interstate arbitration of death taxes.
assistance from the regular, force of ' the depart-               (1 ) ARBITRATION AGREEMENT . . When the' C1 0 p3T ' i-
ment i f necessary and expedient .. The inheri-                   went and the taxing authority of another state
tance tax counsel shall devote his or her time to                 each claim thata decedent was a resident of its
inheritance tax investigations and shall person-                  state on the date of his death, the department
ally make the investigation at the circuit courts .               may make a written agreement with the other
The " inheritance tax counsel shall appear in                     taxing authority and with the personal repre-
circuit court when requested by thecourt or the                   sentative, special administrator or trustee, to a)
department. -                                                     settle the dispute, or b) submit the controversy
    (3) In the conduct of inheritance tax affairs,                to a panel consisting of any uneven number of
the department and its inheritance tax counsel                    arbitrators . Parties to the agreement shall select
shall have the same and similar powers and                        the arbitrators,
authority for gathering information and' mak-                        (2) POWERS OF THE rnNEi .. The panel may
ing investigations as is conferred on the depart-                 administer oaths, take testimony and subpoena
ment in its performance of "other duties .                        witnesses and 'the production of books, papers
    (4) The department and its inheritance tax                    and documents . . Subpoenas may be issued by
                                                                  any panel member . . When a person fails to obey
counsel shall also gather information and make
                                                                  a subpoena, any court of record of this state,
investigations and reports concerning transfers
                                                                  upon applicationn by the panel, may order com-
of' pc`oper' ty of nonresident decedents taxable
                                                                  pliance with the subpoena and, may punish
under this subchapter, and ` shall especially , in-
                                                                  further- failure 'to obey as contempt .
vestigate the probate and other records fo r such
probable transfers without the state and report                      (3) HEARINGS . The panel shall hold hearings
thereon to the department of justice for appro-                   at such times and places. as it may . determine,
p iiate legal action . .                                          upon reasonable notice to the parties to the
   (5) The department of justice shall carry out                  agreement;, all of whom: may a) ; be heard; b)
                                                                  present evidence ; and c) examine and cross-
and enforce the recommendations and direc-
                                                                  examine witnesses,
tions of' thedepartment of' revenue in all matter's
pertaining' to tax collection unde r this sub-                       (4)          MAJORITY votE. Except when issuing sub-
chapter In every estate in which the amount of                    poenas, all questions arising in the course of the
inheritance tax collectible exceeds or probably                   proceedings shall be determined by majority
exceeds $1 ,000, there shall be no compounding ;                  vote of the panel
composition or settlement of" the-taxes until the                    ( 5) DETERMINATION OF RESIDENCE The panel
department of revenue or its inheritance tax                      by majority vote, shall determine the residence
counsel has investigatedthe estate and made a                     of the decedent on the date of his death . This
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 2043                                              I N HERITANCE , ESTATE AND GIFT TAX 72 . 75

 determination shall be final only for purposes of        been enacted . The tax imposed shall be col-
 imposing and collecting death taxes .                    lected and accounted for by the department
     (6) FILING OF DOCUMENTS . The panel shall file       under, s 72 ..22 . . The full amount collected shall
 with each party to the agreement in sub. . (1) and       be paid to the state.
 with the circuit court having jurisdiction under            History:   1 9'7 1 c 3 1 0 ; 19'13 c 90 .
 s . 72 . .27 a certified copy of:
   (a) The agreement;                                     72 .62 Liability and lien . Liability for this tax
   (b) The record of the panel's proceedings ;            is imposed upon the same persons in the same
 and                                                      manner as under s . 72 .21 andd shall remain a lien
                                                          in the same mannerr as under ss . ,72 . .22. (4) and
   (c) The panel's determination
                                                          72 . :25 . If' an election is made to pay under s . .
     (7) COMPROMISE BY PARTIES . The department
                                                          '72 . .22 (4), the tax under this subchapter shall be
 may at any time-enter into a written agreement           allocated to each distributee based on the dis-
 to settle the controversy made under sub . (1)
                                                          tributee's share of the. taxable residuary estate,
fixing the amounts, to be accepted by the parties
in full satisfaction of death taxes .
                                                            History : 1971 310; 1 979 .a 1 ; 3 4 .
    (8) COMP ENS A T ION A ND EXPENSES . Compensa-
tion and expenses of members of'the panel and             72 . 63 When payable . The tax imposed by this
its employes shall be agreed upon among the               subchapter : is payablee at the same time as the
members and the personal representative, spe-             inheritance tax and shall : bear interest at the
cial administrator, ar, trustee . If they cannot          same rate and in the mannerr provided under s .
agree, compensation and expenses shall be fixed           72 .2.3 .
by the court which has or would have probate                History: , 1 971 c. .310
,jurisdiction in the state determined by the board
to be the residence of decedent .. The amounts
                                                          72 :64 , Other provisions applicable . : Unless
agreed upon or fixed shall be an administration
                                                          otherwise specifically covered in this sub-
expense and shall be payable out of property
                                                          chapter, the provisions of subch . II shall apply
                                                          if'they are applicable and are not in conflict with
    (9) DEFINITION, In this section, "state" means        the provisions of this subchapter,
any state, territory, district of-posse§sion of the         History :'' 1971 c 310,
United States .:
  'History: 1'977 c, 310; 1971 'c, 449s . 497
                                                                            SUBC H APTER IV
                  SUBCHAPTER II I
                                                                                `GIFT TAX
                     ESTATE TAX
                                                         72 . 75 . Transfers taxable. (1) TRANSFERS BY
72.60 Purpose . The purpose of this sub-                 RESIDENT S OR NONRESIDENTS . A tax is imposed
chapter is to obtain for Wisconsin the benefit of        upon any transfer to any person after July 9,
the maximum credit allowable upon the United             1933, when:
States estate tax to tne'fu11 extent that this state        (a) Residents.. The transfer is by gift from a
may be entitled ; by imposing this additional tax . .    donor who, at the date of the gift, was a resident
This subchapter is to be liberally construed to          of this state . .
effect this purpose .                                     ` (b) Nonresidents The . transfer is by gif't' of
  Hist ory : 1971 c .310 .                               property within the jurisdiction of this state and
                                                         the donor was not a xesident'of'this state on the
72 .61 Estate tax imposed . In' addition to the          date of'the gift
tax imposed' by suVcfi : II, an' estate tax is
                                                            (2 ) TRAN SFERS UNDER A GENERAL POW ER OF
imposed upon the transfer of all property sub-
                                                         APPOINTMENT, Any lifetime transfer under a
ject to a federal estate tax where the decedent at
                                                         general power of appointment, which is not a
the tune of his death was a resident of"this state . .
                                                         transfer taxable under-subch . II or III consti-
The amount of this estate tax equals the excess,
                                                         tutes a transfer taxable under this, subchapter . .
ifany, of the credit allowable upon tihe,federal
                                                         All sections of subch . I I, relating to the tax on a
estate tax, over the aggregate amount of all
                                                         transfer with respect to a power of appoint-
death taxes paid for transfers of property tax-
                                                         ment shall apply to the tax imposed by this
able because of 'decedent's death : This tax shall
                                                         subchapter if they are applicable to, not covered
not exceed the extent to which its payment will                                                    .
                                                         by and not in conflict with :this subchapter
effect .a'saving or diminution in the amount of            History : 1 971 c 310 ; 1977,c , 4,18 ,
the federal estate tax payable by or, out of the           Th e new inheritance, estate and gift tax law Boykoff, 56
estate of the decedent had this' sI ubchapter not        ML, R 453
                                                    Electronically scanned images of the published statutes.
72 . 76 INHERITANCE, ESTATE AND GIFT TAX                                                                                2044

72 . 76 General exemptions . No tax is im-                             market value- on the date of its transfer, the
posed by this subchapter upon the transfer of                          taxable transfer is measured by the amount by
property when :                                                        which the clear market value of the property
   ( 1 ) The transfer is taxable under subch ., II or                  exceeds the consideration .
III or both .                                                            His tor y : 1971 c . 310

   (2) The transfer is of'any real property or any
                                                                       72 . 78 Amount taxed. The total of'all transfers
tangible personal property of a resident donor
whenn the property is located outside the juris-                       to one donee by one donor within the same
                                                                       calendar year is considered a single transfer for
diction of this state, unless the tangible personal
                                                                       the purposes of'taxation under this.  subchapter
property is outside the jurisdiction of this state
                                                                         History : 1971 c . 310
temporarily or for the sole purpose of deposit or
safekeeping .
                                                                       72 .79 ` Valuation . (1 ) STA ND A RDS OF VALUA-
   (3) Property is transferred, paid, furnished or
                                                                       TION : The standards by which the value of
delivered by an employer to its employes, or to
                                                                       property isdetermined under s 72 28 (1) apply
any organization of its employes, directly or
                                                                       to the determination of the value of a taxable
indirectly, or to any person for them or it, to
                                                                       transfer of property under this subchapter . .
cover insurance, sickness and death benefits,
pensions, relief activities, or to any other em-                          (2) DISPUTING VALUATION Only the depart-
                                                                       ment may challenge a donee's statement of
ployes'' benefit fund, and medical service to
                                                                       valuationn under this subchapter,
employes and their families
    (4) An employer transfers amounts to a for-                           (3) AGREEMENTS . The department may enter
mer employe's distributee or estate, which                             into an agreement with any person liable for a
amounts qualify as an employe death benefit                            tax on a transfer in which the value of an
taxable as income under the internal revenue                           interest in the transfer, is not ascertainable under
                                                                       this subchapter, and may compound and settle
code of 1954; as amended ; or -excludable ; from
gross income under internal revenue codes, 101                         the tax liability on terms it deems equitable and
                                                                       expedient .
(b) ;                                                                    His tory : 1971 c 310..
  ` (5) Reasonable amounts' of property are
transferred, paid, furnished or delivered by any
                                                                       72 : 80 Classification of donees . In determin-
person to anyone dependentupon him for sup-
                                                                       ing the amount of gift tax due under this sub-
port, when the property is transferred, paid,
                                                                       chapter, donees are classified into 4 .groups :
furnished or delivered for, the current mainte-
                                                                       class A, class B, class C and class D These
nance, support or education of the dependent..
                                                                       classes contain the same persons, by virtue of
   (6) The transfer is payment to the department                       theirr relationship to the donor, as distributee
by the donorr of a gift tax arising from a prior                       classes A, B, C and D, respectively, in s .. 72 ..16 ..
transfer to the donee                                                    History : 1971 c 310; 1973 c 90; 1981 c 93
      (7) The transfer is exempt under s . 72 15 (1)
(a)                                                                    72 .81 Annual exemption . Transfers of a clear
  (8) The transfer is to a spouse .                                    market value of $10,000 in any calendar year by
  (9) The transfer is paymentt of an award                             any donor to any donee are exempt from taxa-
under ch . 949 . .                                                     tion under this subchapter . This amount is
   History: 1971 c 310; 1975 c 222, 331, 344 ; 1981 c.. 93 ;           taken out of'the first $25,000 transferred .
1983 a 186 .
                                                                         H istory : 1971 c 310; 1983 a 194
   Cross Referen ce : See 613 ,.81 for exemption of gifts to hos-
pital service insurance corporations
   NOT E: This section is sh own as affected by 1983 Wis. Act          72 . 82 Personal exemption s. (1) In addition
186, e fE, 1 - 1-W Act 186 repealed 72:76 ( 1) (title) whi c h was     to the annual exemption, an additional exemp-
"transfers exempt e d" and renumbered 72.76 ( 1 ) (intro ..) and (a)
to (o) to be 72 .76 (i ntro. .) and (1 ) to (9).                       tion from the tax, allowed only once and taken
                                                                       out of the lowest bracket, is permitted as
72.77 Imposition of tax . The tax is imposed at                        'follows:'
the prescribed rates upon the transfer of prop-                            (a) To a spouse, property of a clear market
erty which is a gift measured by its clear market                      value of'$100,000 on or after July 1, 1976 to
value on the date of the gift less enforceable                         June 30, 1982; and
liens, deductions and exemptions provided in                              (b) To all class A donees, property of a clear
this subchapter In determining the taxable                             market value of $10,000 in respect to transfers
value" of property' transferred, a deduction is                        occurring before January 1, 1985 ; property of a
allowed` for the amount of an enforceable lien                         clear market value of` $25,000 in respect to
on the property if the donee takes the property                        transfers occurring on January 1, 1985, and
subject to that lien: . Where property is trans-                       thereafter to December 31,, 1985 ; and property
ferred ; sold or exchanged for less than its clear                     of a clear market value of $50,000 in respect to
                                                Electronically scanned images of the published statutes.
  2045                                                             I N HERITANCE, EST A TE AN D GIFT TAX 72 .86

  transfers occurring on January 1, 1986, and                              person pays the tax, there is no right of contri-
  thereafter ;                                                             bution unless the person paying reserves it in
     NOTE : Par . (b) is shown as affected b y 19.83 Wi s .. Acts 186
                                                                           writing on the filed tax return ,
  and 194 . . Act 186, which is. effective 1 - 1-86, changes " all other
  class" to "ail class".                                                      History: . 1971 c . 310 ; 1975 .c 222 ; 197 7 c 29, 248 ; 1981 c
                                                                           20, 93 ; 1983 a 194 .
    (c) To class B, C and D donees, no additional
  exemptions .                                                           72 .86 Enforcement and collection . (1). A DD i-
    (2) The clear market value of property . fians-                      rtoN n L ASSESSMENT . No later than 4 years .af 'ter
 ferced to a donee in excess of the annual exemp-                        the r'ep'ort required by s 72 85 is filed , the
 tion must be aggregated from year to year until                        department shall audit it and assess any addi-
 the maximum allowable personal exemption is                            tional tax which may be due .. Interest shall be
 exhausted                                                              charged and collected at the rate of 12%0 . per `
      Hi story: 1971 c . .310 ; 1977, a 248 ; 1979 c 1 ; ] 981 c 93 ;
   1983 a 1 86, 1 9 4 , 538                                                             e
                                                                        year for the period fiom the date on which the
                                                                        report was due until payment . If ' no report of a
   72 . 83 Rates . ' When the value of transfers                        transfer is filed , an assessment may be made any
   within the same calendar year exceeds the ex-                        time after the report was, due .. Notice of an
  emptions emptions allowed under s 72 82, the -tax upon                assessment shall be given to, both the donor and
  transfers to classes of donees specified in s, donee in writing, If the additional tax is not     e
  72 .80 is imposed upon the same amounts and at                        paid within 60 days from the receipt of the
  the same rates as imposed on classes of"distribu=                     notice , an additional penalty of 5%0 of the tax
  teesundecs .'72 .18,                                                  shall be imposed and collected .
     Histor y: . 1971 c,_310 ; 1 973 c 90 :                                  (2), LIEN, The tax imposed by this subchapter
                                                                        is - a lien ., upon the property, transferred until
  72 . 84 . Rate limit . The tax imposed - by> this                     paid , but not exceeding 10 years from the filing
  subchapter shall not exceed 20% of" the clear                         of the report of the transfer . If any; part of the
  market value of propertyy transferred to any                          property comprised in the gift is sold by a donee .
  donee in a singlee calendar year                                      or successor, in title to a purchaser for an
     History: 1971 c, 310                                              adequate and full consideration, that part shall
                                                                       be divested of and.. released from . the lien , and
  72 .85 Filing returns and payment .of the tax .. . the lien , to the extent of the value of the gift,
  (1) DUTIES O F THE DEPARTMENT-            .The department            shall attach to all the property of the donee
  shall supervise the administration of the gift tax                   (including after-acquired property) except
  and, to that end, shall possess the same powers                      property subsequently sold to a purchaser for
  which it has for the assessment of personal                          an adequate and full consideration . . This lien
 property and incomes, including the power to                          does not have priority over any lien of public
 appraise the value of property transferred . The                      record . Notice or knowledge of a conveyance
 department may employ attorneys, account-                             to ,joint tenants or tenants in common shall not
 ants, clerks and assistants necessary to carry out                    constitute actual or constructive notice of a gift ,
 the provisions of this subchapter .                                   tax or lien in respect to property so transferred .
     (2) FILING, By April 15 of each year, the                         Whenever the department is satisfied that the
 donor and the donee of any transfers during the                       collection of the tax will not be jeopardized, it
 preceding year must, if' the aggregate value                          may release the lien on any part of' the property
 exceeds $10,000, report the transfers and pay                         transferred .       The executed release may be
 the tax to the department.. These reports shall                       recorded with the register of deeds of the county
 disclose all information required on the report                       in which the property therein described is
 form . Gift tax reports and the payment of tax                        located ,
 shall be considered timely made if' both are                              (3) DUTY TO FURNISH INFORMATION . I f the
 received by the department within 5 days of                          department considers it necessary, it may re-
 April 15 in a properly addressed envelope with                       quire any person, by notice, to make a return,
 1st class postage duly prepaid, postmarked                           render statements under oath , or to keep
 before midnight of April 15 .                                        records , which the department deems sufficient
    (3) PAYMENT ; INTEREST ; PENALTY If the tax                       to show whether or not the person is liable for a
imposed is not timely paid, interest shall be                         tax under this subchapter . If' any person so
charged and collected on the tax due at the rate                      served fails to make a return , render infoirn a -
of 12% per year from the date due until it is                         tion or keep records required by the depart-
paid . . In addition, if' the required tax return is                  ment, an additional tax equal to 5% of the
not timely filed, a penalty of 5% of the tax is                       amount of tax due shall be assessed and col-
imposed . . If the tax is not paid by the due date,                   lected in the same manner , at the same time , and
the donee and donor are jointly and severally                         subject to the same conditions as apply to the
liable for this tax, penalty and interest . If one                    gift tax imposed by this subchapter .
                                           Electronically scanned images of the published statutes.
72. 86 INHERITANCE, ESTATE AND GIFT TAX "                                     2046

   (4) APPLICABLE INC OME TAX PRO VI SION S . . All whether such falsity ot- fraud is with or without
provisions of income tax statutes not in conflict the knowledge or consent of the person required
with this subchapter on the following subjects to make the return or supply such information,
apply to the administration of this subchapter : shall be fined not less than $100 nor more than
assessment, hearing and appeal procedures (in- $5,000 or imprisoned not to exceed one year or'
cluding ss. 73 01 and 73 . .015), preparation of both .h
assessment and tax rolls, certification of taxes        History : 1971 c .310; i9?sc.22a; 1977 c 29; 1979c 221 ;
due and corrections thereof; collection (includ- 1981 c 20 ; 1983 a . 27
                                          . See note co 7z27 , citing 62 Atty Gen . 251
ing s . 71 ..1 .35) and refund procedures
   (5) DEPARTMENT OF JUSTICE ; DUTIES„ The de-       7 2. 87 Relationship between subchapters II,
paxtment of justice shall enforce the recommen-
                                                     III and IV . (1) CREDI TS AN D R EFUN D S . When a
dations and directions of the department of transfer is taxed under subch . IV and then
revenue in all matters pertaining to gift tax . .'
Where the gift tax collectible exceeds or proba-
bly exceeds $1,000, there shall be no com- (a) If the donee paid the tax under subch . IV,
pounding, composition or settlement of the the tax paid shall apply as a credit for that
taxes until the department of revenue has con- donee against the tax imposed under subch . II
sented in writing to the compounding, compro- or I I I, with the excess, if any, refunded to the
mise or settlement donee or anyy other person entitled thereto with-
                                                            ; or
  (6) ADDITIONAL PENALTY Any person who out interest
wilfully attempts to evade or defeat this tax or (b) If the donor paid the tax under subch . IV,
its payment, or who makes any false or fraudu- the amount of tax paid shall be included as an
lent return or statement ; with intent to evade or asset in the inventory of the estate and shall be
defeat the assessment required, in addition to considered an advance payment under s . 72,22
other- penalties provided, shall be fined not less (2) with the excess, if any, to be refunded under'
than $100 nor more than $5,000 or imprisoned s . 72 24 without interestt
not more than one year or both . . Any person          (2) CONSTRUCTION Nothing in this sub-
who wilfully aids or assists in the preparation of chapter shall in any way be construed to conflict
a wilfully false or fraudulent return or of any with, limit or modify provisions of'subch, II or
information for the purpose of" evading or de- II I ` or the income tax statutes,
feating the assessment or collection of this tax, History : 1971 c: .310 ; 1977 c . 29

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