72-16-301. Taxable transfers generally -- contemplation of death. (1) Except as provided in this section, a tax is imposed upon any transfer of property, real, personal, or mixed, or any interest in the property or income from the property in trust or otherwise to any person, association, or corporation in the following cases:
     (a) when the transfer is by will or by intestate laws of this state from any person dying possessed of the property while a resident of the state;
     (b) when a transfer is by will or intestate law of property within the state or within its jurisdiction and the decedent was a nonresident of the state at the time of death; or
     (c) when the transfer is of property made by a resident or by a nonresident when the nonresident's property is within the state or within its jurisdiction by deed, grant, bargain, sale, or gift made in contemplation of the death of the grantor, vendor, or donor or intended to take effect in possession or enjoyment at or after death.
     (2) A transfer made before the 3-year period ending on the date of the decedent's death is not considered to have been made in contemplation of death.
     (3) Each transfer during the 3-year period ending on the date of the decedent's death must be considered to have been made in contemplation of death, except:
     (a) a transfer shown to be a bona fide sale for an adequate and full consideration in money or money's worth may not be considered to be a gift made in contemplation of death;
     (b) a transfer to the extent that the transfer was excluded from the definition of taxable gifts by reason of section 2503(b) of the Internal Revenue Code may not be considered to be a gift made in contemplation of death.
     (4) Subsection (3)(b) does not apply to any transfer with respect to a life insurance policy.

     History: Ap. p. Sec. 1, Ch. 65, L. 1923; amd. Sec. 1, Ch. 150, L. 1925; amd. Sec. 1, Ch. 105, L. 1927; amd. Sec. 1, Ch. 186, L. 1935; re-en. Sec. 10400.1, R.C.M. 1935; Sec. 91-4401, R.C.M. 1947; (3)En. Sec. 1, Ch. 65, L. 1923; amd. Sec. 1, Ch. 150, L. 1925; amd. Sec. 1, Ch. 105, L. 1927; amd. Sec. 1, Ch. 186, L. 1935; re-en. Sec. 10400.1, R.C.M. 1935; amd. Sec. 1, Ch. 269, L. 1955; Sec. 91-4402, R.C.M. 1947; R.C.M. 1947, 91-4401(part), 91-4402; amd. Sec. 25, Ch. 582, L. 1989; amd. Sec. 32, Ch. 592, L. 1995.