Uniform Transfer Tax

The Uniform Transfer Tax (UTT) is a tax imposed on the transfer of property from one person to another. The UTT is a state-level tax, but most states have adopted the UTT provisions of the Uniform Probate Code. The UTT is designed to prevent people from avoiding estate taxes by making gifts during their lifetimes.

The UTT is imposed on transfers of property that are not subject to the federal gift tax. This includes transfers of property that are made in trust, transfers of property that are made in exchange for the release of a debt, and transfers of property that are made in contemplation of death.

The UTT is also imposed on transfers of property that are made to a non-resident of the United States. This includes transfers of property that are made by a U.S. citizen or resident to a non-resident of the United States, and transfers of property that are made by a non-resident of the United States to another non-resident of the United States.

The UTT is calculated on the fair market value of the property that is transferred. The UTT rate is the same as the federal gift tax rate. The UTT is paid by the person who makes the transfer.

The UTT is a complex tax, and there are many exceptions and special rules that apply. If you are considering making a gift, it is important to consult with an experienced estate planning attorney to make sure that you understand the UTT and how it will affect your gift.

In addition to the UTT, there are also state estate taxes and state inheritance taxes. These taxes are imposed on the transfer of property at death. The UTT and the state estate and inheritance taxes are separate taxes, and they are not deductible from each other.

The UTT is a relatively new tax. It was first enacted in 1981, and it has been amended several times since then. The UTT is designed to prevent people from avoiding estate taxes by making gifts during their lifetimes. However, the UTT can also be used to raise revenue for state governments.