N.Y. Tax Law § 971-a: Additional proceedings in estates of non-domiciliary decedents

§ 971-a. Additional proceedings in estates of non-domiciliary

decedents. (a) Condition to appointment of executor for nonresident.

Every petition for ancillary letters testamentary or of administration

and every petition for original letters testamentary or of

administration in the estate of a decedent who at the time of his death

was not domiciled in this state, shall set forth the commissioner of

taxation and finance as a party to be cited, and upon the presentation

thereof the surrogate shall issue a citation directed to the

commissioner. The decree of the surrogate awarding the letters may

contain any provision for the payment of the tax imposed by this article

or the giving of security therefor which might be made by such surrogate

if the commissioner of taxation and finance were a creditor of the

decedent.

(b) Notification in case of estate of nonresident. Whenever the

commissioner of taxation and finance is cited on the issuance of

original letters testamentary or of administration in the estate of a

decedent not domiciled in this state as provided in subsection (a) of

this section, the commissioner shall notify the proper taxing

authorities of the state in which such decedent was domiciled of the

fact of the filing of the petition and shall furnish information

submitted by the executor to the commissioner as to the decedent's

property and value thereof. No executor shall be entitled to a final

accounting or discharge in a surrogate's court of this state unless he

shall have filed with the surrogate, in addition to the certificate or

final receipt required under section nine hundred eighty-one of this

article, (i) proof that all death taxes, together with interest and

penalties thereon, due to the state of domicile of such decedent or to

any political subdivision thereof have been paid or secured, or (ii) a

consent by the proper taxing authorities of the state of domicile to

such final accounting or discharge.

(c) Domiciliary state's tax authority as interested party. The

official charged with administration of the death tax laws of the

domiciliary state shall be deemed a party interested in the estate of a

deceased individual who at his death was not a resident of New York

state, to the extent that such official may petition for an accounting

therein if the death taxes, interest and penalties due to such

domiciliary state or a political subdivision thereof are not paid or

secured. Upon such petition the surrogate may decree such accounting and

may decree the remission to a fiduciary appointed by the domiciliary

probate court of so much of the personal property of such estate as may

be necessary to insure the payment to the state of domicile, or

political subdivision thereof, of the amount of death taxes, interest

and penalties due to such state or political subdivision.

(d) Requirement of reciprocity. This section shall apply to the estate

of a deceased individual who at his death was not a resident of New York

state only (i) if the laws of the state of his domicile contain a

provision, of any nature or however expressed, whereby this state is

given reasonable assurance of the collection of its death taxes,

interest and penalties, from the estates of decedents dying domiciled in

this state in cases where the estates of such decedents are being

administered by the probate court of such other state by virtue of

original letters testamentary or of administration, or (ii) if the state

in which such decedent was domiciled does not grant letters testamentary

or of administration in estates of nonresidents, until after letters

have been issued by the state of domicile.

(e) Cooperation by commissioner of taxation and finance. The

commissioner of taxation and finance shall cooperate with the taxing

authorities of the state of domicile of a deceased individual who at his

death was not a resident of New York state and shall furnish them with

such information as may be requested with respect to any such estate.

The provisions of this section shall be liberally construed to insure

that the state of domicile of a decedent shall receive any death taxes

together with interest and penalties thereon, due to it from such

decedent's estate.

(f) Definition of state. For the purpose of this section, the term

"state" means the states of the United States, the District of Columbia,

any territory of the United States and the Dominion of Canada or any

province thereof.