§ 15-12-1408. Securing Payment of Estate Tax From Property in Possession of Fiduciary

1. A fiduciary may defer a distribution of property until the fiduciary is satisfied that adequate provision for payment of the estate tax has been made.
2. A fiduciary may withhold from a distributee an amount equal to the amount of estate tax apportioned to an interest of the distributee.
3. As a condition to a distribution, a fiduciary may require the distributee to provide a bond or other security for the portion of the estate tax apportioned to the distributee.

Source: L. 2011: Entire part added, (SB 11-165), ch. 184, p. 706, § 1, effective August 10.

OFFICIAL COMMENT

This section grants a fiduciary discretion either to retain funds or to require a distributee to provide security for payment of that distributee’s share of the estate tax. The fiduciary’s exercise of that discretion and use of retained properties are subject to the fiduciary’s duty to treat the parties fairly.