This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0494 - Changes to Probate Code
L.R. NO. 2331-08
BILL NO. Truly Agreed To and Finally Passed HCS for SS for SCS for SB 494
SUBJECT: Probate Code
TYPE: Original
DATE: May 7, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue $0 $0 (Less than
$50,000)
Total Estimated
Net Effect on All
State Funds $0 $0 (Less than
$50,000)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of State Courts Administrator anticipate that the
proposed legislation would not have a significant impact on the workload of
the courts and therefore report no fiscal impact.
Officials from the Department of Revenue (DOR) assume that shortening the
statute of limitations as it relates to the collection of estate taxes could
result in decreased revenues in the collection of estate taxes from probate
estates due to the absence of notice provisions to DOR in the statute. DOR
filed 83 claims in FY 1995 and collected $56,000; however, it is difficult to
determine the loss in state revenue which would result from the passage of
the proposed legislation.
Oversight assumes that the proposed legislation does not change the manner in
which DOR receives notice of estate filings, as there are no notice
provisions to DOR in the current law or in the proposed legislation.
However, absent formal notification of estate filings to DOR, it is probable
that DOR could experience a loss in revenue collections since the statute of
limitations relating to proceedings upon the bond of a personal
representative would be reduced from two years to one year after the personal
representative's discharge. Oversight assumes there would be no lost
revenues in FY 1997 or FY 1998, as the proposed legislation would reduce
current filings by one year after the discharge of the personal
representative. Oversight assumes that lost revenues in FY 1999 and future
years would be less than $50,000 per fiscal year.
Officials from the Department of Economic Development - Division of Finance
(DED) and the Division of Professional Registration assume the proposed
legislation would establish procedures for a fiduciary to transfer
responsibility to another qualified entity. DED currently has responsibility
for these transfers between affiliated entities and assumes that additional
costs, if any, could be absorbed with existing resources.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
GENERAL REVENUE FUND
Loss - Department of Revenue (DOR) (Less than
Reduced Estate Tax Collections $0 $0 $50,000)
ESTIMATED NET EFFECT ON (Less than
GENERAL REVENUE FUND $0 $0 $50,000)
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
$0 $0 $0
DESCRIPTION
The proposed legislation would define "cemetery association" and include such
an entity in the list of entities excluded from certain restrictions
associated with cemeteries as outlined in Section 214.270, RSMo.
The proposal would define "interested person" and entitle such persons to
petition the court for the issuance of letters testamentary or of
administration if no application for letters was filed within twenty days
after the decedent's death. The petition would have to be filed within one
year after the decedent's death and would include the decedent's name,
address and date of death as well as the names of personal representatives
named in any will and the names of the decedent's heirs. The court would set
a date for a hearing to determine who should be directed to apply for the
letters testamentary or of administration, or the court could refuse to issue
letters on the estate.
A will would have to be presented within six months after the letters on the
estate are published, or within thirty days after an action is filed to
contest the will, whichever occurs later. If no notice has been given of the
granting of the letters, a will would have to be presented within one year
after the testator's death. If the will is not presented within these time
periods, it could not be admitted to probate.
The proposed legislation would not allow any actions to be brought upon a
bond of a personal representative more than one year after the personal
representative's discharge. Current law allows for actions to be brought up
to two years after the discharge.
Claims on a decedent's estate would have to be made within six months after
the date of the first published notice of the letters of the estate, or, if
notice was served upon or mailed to the claimant, within two months after the
date of service or mailing, or else such claim would be forever barred.
Claims could be filed against the estate without personally serving the
personal representative if the claims are acknowledged in writing.
The decedent's surviving spouse and children would be entitled to money out
of the estate for their maintenance during the period of administration of
the estate. The amount of maintenance would be determined by the court and
would be based on the surviving spouse's standard of living and the estate's
assets. This right would be in addition to the homestead allowance. The
maximum homestead allowance would be increased from $7,500 to $15,000.
A bank or trust company would be allowed to transfer all fiduciary
obligations by assignment without court approval with prior approval of the
Director of the Division of Finance of the Department of Economic
Development.
This proposal contains an emergency clause.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of State Courts Administrator
Department of Revenue
Department of Economic Development - Division of Finance