                                 CODE OF VIRGINIA

AUGMENTED ESTATE; EXCLUSIONS; VALUATION (§ 64.2-305)

A. The augmented estate means the decedent&#8217;s entire estate passing by will
or intestate succession, real and personal, after payment of allowances and
exemptions under Article 2 (§ 64.2-309 et seq.) of this chapter, funeral
expenses, charges of administration that shall not include federal or state
transfer taxes, and debts, and to which is added the following amounts:

   1. The value of property, other than tangible personal property received by
   gift and the proceeds thereof, owned or acquired by the surviving spouse at
   the decedent&#8217;s death, to the extent the property is derived from the
   decedent by any means other than by will or intestate succession without full
   consideration in money or money&#8217;s worth;

   2. The value of property, other than tangible personal property received by
   gift and the proceeds thereof, derived by the surviving spouse from the
   decedent without full consideration in money or money&#8217;s worth by any
   means other than by will or intestate succession, and transferred by the
   surviving spouse at any time during the marriage to a person other than the
   decedent, which would have been includable in the surviving spouse&#8217;s
   augmented estate if the surviving spouse had predeceased the decedent; and

   3. The value of property transferred to anyone other than a bona fide
   purchaser by the decedent at any time during the marriage to the surviving
   spouse, to or for the benefit of any person other than the surviving spouse,
   to the extent that the decedent did not receive full consideration in money or
   money&#8217;s worth for the transfer, if the transfer was any of the following
   types:
   				a. Any transfer under which the decedent retained for his life, for any
   period not ascertainable without reference to his death, or for any period
   which does not in fact end before his death, the possession or enjoyment of,
   or the right to income from, the property;
   				b. Any transfer to the extent that the decedent retained for his life, for
   any period not ascertainable without reference to his death, or for any period
   which does not in fact end before his death, the power, either alone or in
   conjunction with any other person, to revoke or to consume, invade, or dispose
   of the principal for his own benefit;
   				c. Any transfer whereby property is held at the time of the
   decedent&#8217;s death by the decedent and another with right of survivorship;
   or
   				d. Any transfer made to or for the benefit of a donee within the calendar
   year of the decedent&#8217;s death or any of the five preceding calendar years
   to the extent that the aggregate value of the transfers to the donee exceeds
   the amount specified in &#xA7; 2503(b) of the Internal Revenue Code of 1986,
   as amended, for that calendar year, without regard to whether the federal gift
   tax exclusion applies to the transfer.

B. Notwithstanding the provisions of this section, the augmented estate shall
not include (i) the value of any property transferred by the decedent during
marriage with the written consent or joinder of the surviving spouse; (ii) the
value of any property, its income, or proceeds received by the decedent, before
or during the marriage to the surviving spouse, by gift, will, intestate
succession, or any other method or form of transfer to the extent it was (a)
received without full consideration in money or money&#8217;s worth from a
person other than the surviving spouse, and (b) maintained by the decedent as
separate property; (iii) any transfer made to anyone other than the surviving
spouse prior to January 1, 1991, to the extent that such transfer was
irrevocable on that date; or (iv) the value of any property excluded from the
augmented estate pursuant to &#xA7; 64.2-317.

C. Property is valued as of the decedent&#8217;s death, except that property
irrevocably transferred during the lifetime of the decedent is valued as of the
date the transferee came into possession or enjoyment of the property if such
date precedes the date of the decedent&#8217;s death.

   1. Life estates and remainder interests are valued in the manner prescribed in
   Chapter 5 (&#xA7; 55.1-500 et seq.) of Title 55.1, and deferred payments and
   estates for years are discounted to present value using the interest rate
   specified in &#xA7; 55.1-500.

   2. The value of an insurance policy that is irrevocably transferred during the
   lifetime of a decedent is the cost of a comparable policy on the date of the
   transfer or, if such a policy is not readily available, the policy&#8217;s
   interpolated terminal reserve. The value of any premiums paid on an insurance
   policy owned by another person is only the amount of the premiums paid and not
   the insurance purchased or maintained with such premiums.

   3. An initial interest in property owned as a joint tenant with survivorship
   is valued at the time the interest is acquired, and a further interest
   received upon the death of a cotenant is valued at the time of the
   cotenant&#8217;s death. Property owned jointly by persons married to each
   other is rebuttably presumed to have been acquired with contributions of equal
   value by each tenant. The mere creation of an indebtedness secured by jointly
   owned property is not a contribution to its acquisition, but any satisfaction
   of such an indebtedness is a contribution. An interest in a tenancy by the
   entireties is valued as if it were an interest in a joint tenancy with
   survivorship. Joint accounts in financial institutions are valued in
   accordance with the provisions of Article 2 (&#xA7; 6.2-604 et seq.) of
   Chapter 6 of Title 6.2.

HISTORY: 1990, c. 831, § 64.1-16.1; 1992, cc. 617, 647; 1998, c. 234; 1999, c.
38; 2007, c. 308; 2012, c. 614; 2014, c. 532.