collateral heir


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collateral heir

An heir who is not in a direct line from a decedent, but born from a collateral line, such as brothers and sisters, aunts and uncles, or cousins. Relevant in the context of intestate succession, being the order of distribution of property when one dies without a will. Contrast to lineal heirs.

References in periodicals archive ?
(17) That changed in 1885 when New York enacted an inheritance tax on collateral heirs, (18) which led other states to enact similar death transfer taxes modeled on New York's tax.
Today, state inheritance taxes differ between lineal heirs (77e.g., spouses, parents, children, and grandchildren), collateral heirs (78e.g., siblings, nieces, nephews, aunts, and uncles), and nonrelated heirs (e.g., neighbors and friends).
Inheritance taxes today tax lineal heirs at a more preferential rate than collateral heirs, and collateral heirs at a more preferential rate than nonrelative heirs.
(173) Eliminating discriminatory rate structures in state death transfer taxes will at least eliminate disfavored treatment given to collateral heirs and nonrelated heirs, although the current landscape favors total repeal of all state death transfer taxes.
TRA '97 expands the predeceased parent exception to transfers to collateral heirs (e.g., grandnephews or grandnieces) if the transferor has no living lineal descendants at the time of transfer.
Currently, this predeceased parent exception is not applicable to transfers to collateral heirs (e.g., grandnieces or grandnephews), taxable terminations or taxable distributions.
* Supports adding definitions for "descendants" and "collateral heirs" to F.S.