Tax Type
Estate Tax
Description
Automatic lien on property of non-resident decedent
Topic
Estates and Trusts
Date Issued
04-30-1986
April 30, 1986
Re: §58.1-908 Virginia Estate Tax
Automatic lien on property of Non-resident decedent
Dear ****************
You have asked if there is any administrative means for the Department of Taxation to provide "no tax liability certificates" similar to the practice under the former Virginia Inheritance Tax.
I recognize that §58.1-908 causes potential problems for title examiners and insurers because it creates an automatic lien on property of a non-resident decedent from the date of death without any direct means for the public to ascertain whether or not a tax is due.
Under the former inheritance tax law the department prepared certificates from information contained in the inheritance tax return. Under the current Virginia Estate Tax law, when a decedent's estate is less than the minimum filing requirement then no federal or Virginia estate tax return is required. Without a return there is no way for the department to ascertain when a non-resident has died, what property is located in Virginia, and whether or not a tax is due. Therefore the department cannot issue certificates concerning the tax liability of a non-resident decedent.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner