The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment. This can be conveyed earlier at age 18 if noted in the trust terms.North Dakota has a state income tax, structured as a progressive tax on income.
Tax rates range from 1.95% - 2.5%.
North Dakota does not impose an inheritance tax.
North Dakota imposes an estate tax equal to the maximum credit allowed under the federal tax code for paid state estate and inheritance taxes under IRC Sec. 2011. However, the current federal tax code does not permit a credit for paid state estate or inheritance taxes. Therefore, there is no credit estate tax in effect at this time.
North Dakota does not impose a GST tax.
North Dakota does not impose a gift tax.
The minimum age of a person competent to make a will is 18.
The number of witnesses necessary to execute a will is two.
The original custodial gift may be a life insurance policy or annuity contract.
Custodial property may be invested in or used to pay premiums on (1) a policy on the minor's life if the minor's estate is the sole beneficiary, or (2) a policy on a third party in whom the minor has an insurable interest, if the minor or the custodian is the irrevocable beneficiary.
The custodial arrangement terminates when:
The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment. This can be conveyed earlier at age 18 if noted in the trust terms.
The minor child reaches age 18 for other custodial transfers.
The minor child dies.
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Each state describes its own distribution pattern of how property passes to a decedent's spouse, children, parents and siblings. If no such individuals are living, state laws specify other takers among more distant ancestors before awarding property to the state through "escheat" provisions. We do not trace devolution of property beyond those noted above, but cite appropriate statutes for those interested in additional detail.
Many states refer to their distribution regime by simply stating that the heirs of predeceased individuals take "by representation." We use only the statutory verbiage, but may cite other statutory guidance when it exists.
States vary in the way they refer to descendants, using such terms as "issue" or simply children or grandchildren. We use the term "descendant," unless usage of different term adds clarity.
Some states address situations where misconduct or abuse causes forfeiture of a right to receive a share of the estate. Those interested in this information should see the state statutes.
The estate goes to the surviving spouse, as follows:
If there are no surviving descendants or parents—100% of the estate
If all surviving descendants are also descendants of the spouse and no other descendant of the spouse survives—100%
If one or both parents survive but there are no surviving descendants—$300,000 plus 75% of the balance of the estate
If all surviving descendants are also descendants of the spouse and the spouse has one or more descendants who are not descendants of the decedent—$225,000 plus 50% of the balance of the estate
If one or more of the decedent's surviving descendants are not descendants of the spouse—$150,000 plus 50% of the balance of the estate
If there is no surviving spouse, or if a portion of the estate does not go to the spouse:
100% to surviving descendants by representation (see N.D.C.C. §30.1‐09.1‐09(3))
If there is no surviving spouse or descendant:
100% to surviving parent or parents equally
If there is no surviving spouse, descendant or parent:
100% to the descendants of the decedent's parents (or the descendants of either parent) by representation (see N.D.C.C. §30.1‐09.1‐09(3))
If none of the above:
Intestacy laws outline further distribution steps to the level of grandparents, then deceased spouses and their descendants. See N.D.C.C. §30.1‐04‐03 paragraphs 5. and 6.
If no legally described recipient can be found, estate assets go to the state of North Dakota.
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Non-qualified Annuities: No exemption.
Life Insurance Cash Value: Up to $8,000 if the owner is the insured or someone on whom the debtor is a dependent is the insured.
Life Insurance Proceeds: Exempt from creditors of the insured. Exempt from creditors of the beneficiary if the beneficiary was a dependent of the insured to the extent reasonably necessary to support the debtor and any dependent.
Digital Assets: North Dakota follows the Revised Uniform Fiduciary Access to Digital Assets Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition.
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