                                 CODE OF VIRGINIA

DECEDENT&#8217;S NON-PROBATE TRANSFERS TO OTHERS (§ 64.2-308.6)

The value of the augmented estate includes the value of the decedent&#8217;s
non-probate transfers to others, not included under § 64.2-308.5, of any of the
following types, in the amount provided respectively for each type of transfer:

1. Property owned or owned in substance by the decedent immediately before death
that passed outside probate at the decedent&#8217;s death. Property included
under this category consists of:
			a. Property over which the decedent, alone, immediately before death, held a
presently exercisable general power of appointment. The amount included is the
value of the property subject to the power, to the extent the property passed at
the decedent&#8217;s death, by exercise, release, lapse, in default, or
otherwise, to or for the benefit of any person other than the decedent&#8217;s
estate or surviving spouse.			b. The decedent&#8217;s fractional interest in
property held by the decedent in joint tenancy with the right of survivorship.
The amount included is the value of the decedent&#8217;s fractional interest, to
the extent the fractional interest passed by right of survivorship at the
decedent&#8217;s death to a surviving joint tenant other than the
decedent&#8217;s surviving spouse.			c. The decedent&#8217;s ownership interest
in property or accounts held in Payable on Death or Transfer on Death
designations or co-ownership registration with the right of survivorship. The
amount included is the value of the decedent&#8217;s ownership interest, to the
extent the decedent&#8217;s ownership interest passed at the decedent&#8217;s
death to or for the benefit of any person other than the decedent&#8217;s estate
or surviving spouse.			d. Proceeds of insurance, including accidental death
benefits, on the life of the decedent, if the decedent owned the insurance
policy immediately before death or if and to the extent the decedent alone and
immediately before death held a presently exercisable general power of
appointment over the policy or its proceeds. The amount included is the value of
the proceeds, to the extent they were payable at the decedent&#8217;s death to
or for the benefit of any person other than the decedent&#8217;s estate or
surviving spouse.

2. Property transferred in any of the following forms by the decedent during
marriage:
			a. Any irrevocable transfer in which the decedent retained the right to the
possession or enjoyment of, or to the income from, the property if and to the
extent the decedent&#8217;s right terminated at or continued beyond the
decedent&#8217;s death. The amount included is the value of the fraction of the
property to which the decedent&#8217;s right related, to the extent the fraction
of the property passed outside probate to or for the benefit of any person other
than the decedent&#8217;s estate or surviving spouse.			b. Any transfer in which
the decedent created a power over income or property, exercisable by the
decedent alone or in conjunction with any other person, or exercisable by a
non-adverse party, to or for the benefit of the decedent, creditors of the
decedent, the decedent&#8217;s estate, or creditors of the decedent&#8217;s
estate. The amount included with respect to a power over property is the value
of the property subject to the power, and the amount included with respect to a
power over income is the value of the property that produces or produced the
income, to the extent the power in either case was exercisable at the
decedent&#8217;s death to or for the benefit of any person other than the
decedent&#8217;s surviving spouse or to the extent the property passed at the
decedent&#8217;s death, by exercise, release, lapse, in default, or otherwise,
to or for the benefit of any person other than the decedent&#8217;s estate or
surviving spouse. If the power is a power over both income and property and the
preceding sentence produces different amounts, the amount included is the
greater amount.

3. Property that passed during marriage and during the two-year period next
preceding the decedent&#8217;s death as a result of a transfer by the decedent
if the transfer was of any of the following types:
			a. Any property that passed as a result of the termination of a right or
interest in, or power over, property that would have been included in the
augmented estate under subdivision 1 a, b, or c, or under subdivision 2, if the
right, interest, or power had not terminated until the decedent&#8217;s death.
The amount included is the value of the property that would have been included
under those subdivisions if the property were valued at the time the right,
interest, or power terminated, and is included only to the extent the property
passed upon termination to or for the benefit of any person other than the
decedent or the decedent&#8217;s estate, spouse, or surviving spouse. As used in
this subdivision, &#8220;termination,&#8221; with respect to a right or interest
in property, occurs when the right or interest terminated by the terms of the
governing instrument or the decedent transferred or relinquished the right or
interest, and, with respect to a power over property, occurs when the power
terminated by exercise, release, lapse, default, or otherwise, but, with respect
to a power described in subdivision 1 a, &#8220;termination&#8221; occurs when
the power terminated by exercise or release, but not otherwise.			b. Any
transfer of or relating to an insurance policy on the life of the decedent if
the proceeds would have been included in the augmented estate under subdivision
1 d had the transfer not occurred. The amount included is the value of the
insurance proceeds to the extent the proceeds were payable at the
decedent&#8217;s death to or for the benefit of any person other than the
decedent&#8217;s estate or surviving spouse.			c. Any transfer of property, to
the extent not otherwise included in the augmented estate, made to or for the
benefit of a person other than the decedent&#8217;s surviving spouse. The amount
included is the value of the transferred property to the extent the transfers to
any one donee in either of the two years next preceding the date of the
decedent&#8217;s death exceeded the amount excludable from taxable gifts under
26 U.S.C. &#xA7; 2503(b), or its successor, on the date of the gift.

HISTORY: 2016, cc. 187, 269.