                                 CODE OF VIRGINIA

NONPAYMENT OF TAX; LIEN FOR UNPAID TAXES; CERTIFICATE OF RELEASE FROM LIEN (§
58.1-908)

A. A lien shall arise as follows upon all property, real or personal, located in
the Commonwealth of Virginia, of every decedent having a taxable estate who
fails to pay the tax imposed by this chapter:

   1. In the case of a nonresident decedent having a taxable estate a lien shall
   not arise automatically upon the death of the decedent.

   2. In the case of a resident or nonresident decedent, such lien shall attach
   to the personal estate of the decedent only upon the Department&#8217;s filing
   a memorandum in the clerk&#8217;s office of the county or city wherein the
   decedent resided, and to the real estate only upon the filing of a memorandum
   in the clerk&#8217;s office of the county or city wherein such real estate is
   located.
   				Such lien, once it attaches, shall be enforceable for a period not to
   exceed ten years from the date of death of the decedent.

B. Such part of the property of a decedent as may at the time be subject to the
lien provided for under subsection A shall be divested of such lien to the
extent used for payment of charges against the estate or expenses of its
administration allowed by the court having jurisdiction thereof.

C. Such part of the personal property of a decedent as may at the time be
subject to the lien provided for under subsection A shall be divested of such
lien upon the conveyance or transfer of such property to a purchaser or holder
of a security interest for an adequate and full consideration and such lien
shall then attach to the proceeds received for such property from such purchaser
or holder of a security interest. Real property shall not be divested of such
lien except as provided in subsections B and D of this section.

D. When any lien under this section has attached and the Department is satisfied
that the tax liability, if any, of the estate has been fully discharged, the
Department shall issue a certificate releasing all property of such estate from
the lien herein imposed; or, if the Department is satisfied that the tax
liability of the estate has been provided for, it shall issue a certificate
releasing any surplus property of such estate from the lien herein imposed.

HISTORY: Code 1950, § 58-238.9; 1978, c. 838; 1979, c. 567; 1984, c. 675; 1987,
c. 373.