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for the decedent’s burial lot. If the social security death benefit was paid to the undertaker,

to the extent the employe benefit plan was employer funded provided the payment must be

the remaining portion of the bill paid is deductible, unless the survivor is the spouse. If the

included as ordinary income for federal income tax purposes and the recipient irrevocably

spouse survives, the total amount can be deducted and the death benefit payment need

waives for federal income tax purposes capital gains treatment or 10 year income

not be reported as an asset.

averaging.

Part 5-Line 4, Page 2 (Administration Expenses)

Benefits from any employe retirement plan of the United States, State of Wisconsin or

Report the expenses of administration which include expenses incurred in the termination

Wisconsin municipality are completely exempt and need not be reported. Also exempt are

of a joint tenancy such as attorney fees, personal representative fees, appraisal fees and

group life insurance proceeds paid from the retirement plan of the State of Wisconsin

publication fees to the extent such expenses HAVE NOT BEEN DEDUCTED OR WILL

(effective for deaths on or after January 1, 1982).

NOT BE DEDUCTED FOR WISCONSIN INCOME TAX PURPOSES. CAUTION: For

deaths prior to August 1, 1987, no deduction is permitted if the administration expenses

If the decedent made gifts within two years prior to death, the gifts are generally considered

have been or will be deducted on the federal income tax return.

to have been made in contemplation of death even though the decedent may have

appeared healthy immediately prior to death. Such gifts are subject to the Wisconsin

Part 5-Line 5, Page 2 (Total Deductions)

inheritance tax. If gifts were made within two years prior to death, attach a copy of the death

If line 5 exceeds line 1, Part 1, the excess may be applied against the distributive share of

certificate to Form 101A.

the distributee who actually paid the expense or is obligated to make payment.

Part 1-Line 6, Page 1 (Insurance Proceeds)

Enter the total of life insurance proceeds paid to all named beneficiaries on the death of the

decedent. For deaths prior to July 1, 1979, deduct a $10,000 exclusion and enter the

COMPUTATION OF TAX

remaining amount. (No exclusion is available for deaths on or after July 1, 1979.) The

$10,000 exclusion is the maximum exclusion allowed regardless of the total insurance

Part 2-Page 1

proceeds paid beneficiaries or the number of insurance policies or beneficiaries. Insurance

Enter the name of the distributee in column 1 and the distributee’s social security number

proceeds payable to the estate are not eligible for this exclusion and should be entered in

in column 2. (Failure to include the social security number of all distributees may delay the

Part 3. If there is more than one insurance policy on the decedent’s life, a schedule should

processing of this return.) In column 3, report the amount of the decedent’s Wisconsin

be attached listing each policy, the names of the beneficiaries and the amount of benefits

taxable estate (Part 1, line 8) each distributee will receive.

payble to each beneficiary.

In column 4, enter the distributee’s relationship to the decedent.

Part 1-Line 7, Page 1 (Other Property)

Enter the value of and itemize all other property that decedent held an interest in at date of

Compute the tax for column 5 using the tax rates from the table below. In computing the tax

death. Report benefits paid to a beneficiary under an employe benefit plan, including

due on each distributee’s share first deduct the exemptions from the lowest bracket(s).

retirement payments not indicated below as exempt. Any amount accumulated as a result

Compute the tax on the balance remaining in each bracket after the available exemptions

of the employer’s contributions to a federally qualified plan is exempt. The person

have been deducted. Enter the tax computed in column 5.

administering the program can furnish information on this. For deaths occurring on or after

January 1, 1978 but before January 1, 1979, benefits payable in a lump-sum are fully

BEGINNING WITH DATES OF DEATH IN 1988, THE INHERITANCE TAX IS BEING

includible in the decedent’s estate regardless of who contributed to the plan. For deaths

PHASED OUT OVER A FIVE-YEAR PERIOD. USE SCHEDULE TC BELOW TO

occurring on or after January 1, 1979, a lump-sum payment will again qualify for exemption

COMPUTE THE AMOUNT DUE.

Wisconsin Inheritance Tax Exemptions and Rates For Form 101A

Balance

$25,000

$50,000

$100,000

Personal

Relationship to Decedent

Exemptions

$25,000

$50,000

$100,000

$200,000

Spouse (deaths on or after January 1, 1978 but before July 1, 1979)

50,000

3.75%

5.0%

Spouse (deaths on or after July 1, 1979 but before July 1, 1982)

250,000

Spouse (deaths on or after July 1, 1982) All property received is exempt

Lineal issue (children, grandchildren), lineal ancestor (parents, grandparents), wife or

widow of a son, husband or widower of a daughter, adopted or mutually acknowledged

child, or mutually acknowledged parent

Deaths on or after January 1, 1978 but before July 1, 1979

4,000

2.5%

5.0%

7.5%

10.0%

Deaths on or after July 1, 1979 but before April 13, 1984

10,000

Deaths on or after April 13, 1984 but before July 1, 1985

25,000

Deaths on or after July 1, 1985

50,000

15.0%

Brother, sister, or descendant of brother or sister (niece, grandnephew, etc.)

1,000

5.0%

10.0%

20.0%

Brother or sister of a father or mother, or a descendant of a brother or sister

1,000

7.5%

15.0%

22.5%

30.0%

All others regardless of relationship to the decedent

500

10.0%

20.0%

30.0%

The personal exemption is applied against the lowest bracket.

The tax cannot exceed 20% of the value of the property transferred to any distributee.

*For deaths on or after January 1, 1986, these tax rates are 20% instead of the rates shown.

Schedule TC — Tax Computation

1987 and

For Deaths in

1988

1989

1990

1991

Prior

1. Tax from line 11, Page 1 .................................................................................

2. Percentage of Tax Payable .............................................................................

100%

80%

60%

40%

20%

3. Multiply amount on line 1 by rate on line 2. (Enter here and on line 12,

of Page 1 of Form 101A. .................................................................................

Instructions For Form 101a - Wisconsin Inheritance Tax Return - Wisconsin Department Of Revenue Page 2

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