HRS § 236D-3.5 — Generation-skipping transfers; tax imposed; credit for tax paid other state


[§236D-3.5] Generation-skipping transfers;
tax imposed; credit for tax paid other state. (a) A tax in an amount
equal to the federal credit is imposed on every generation-skipping transfer
of:
(1) Property located in this State; and
(2) Property from a resident trust.
(b) If the generation-skipping transfer is
subject in another state to a similar tax and qualifies for the federal credit,
the amount of the tax due under this section shall be credited with the lesser
of:
(1) The amount of the tax paid to the other state
and credited against the federal tax; or
(2) An amount computed by multiplying the federal
credit by a fraction, the numerator of which is the value of the property
subject to the generation-skipping transfer tax paid to the other state, and
the denominator of which is the value of all property subject to the federal
generation-skipping transfer tax.
If paragraph (1) or (2) results in an amount less
than the total federal credit allowed being paid to all states which may claim
any part of the credit, then the interested states may agree to a fair and
equitable apportionment of the credit without regard to the residence of the
trust.