California Code of Regulations
Title 18 - Public Revenues
Division 2.5 - State Controller
Chapter 1 - Inheritance Tax
Article 2 - Imposition and Computation of Inheritance Tax
Section 13402 - Computation of Tax-in General

(a) Decedents Dying Prior to 5:15 p.m., September 26, 1977. The inheritance tax is ordinarily measured by the clear market value (see Revenue and Taxation Code Section 13312) of the distributive share of a decedent's estate to which a particular transferee is entitled. Each individual share is in the nature of a separate estate, and the tax is computed separately thereon. Consequently, there will be as many separate computations of the tax in a particular estate as there are transferees of the decedent's property.

(b) Decedents Dying on or After 5:15 p.m., September 26, 1977. The date of gift value of net gifts (within the meaning of Revenue and Taxation Code Section 15118, see Section 15118) which are not otherwise subject to inheritance tax, made by the decedent during lifetime after December 31, 1976, to a particular transferee is added to the clear market value (see Revenue and Taxation Code Section 13312) of the distributive share of decedent's estate to which the particular transferee is entitled, and a tentative tax is computed upon a sum of these two amounts. The tentative tax is then reduced by the amount of tax computed, at the rates and exemptions in effect at date of death, upon the total date of gift value of all gifts made by decedent during his lifetime after December 31, 1976 to the particular transferee. The difference thus determined is the amount of inheritance tax due with respect to the transferee.

Since each individual transferee's tax is computed separately, there will be as many separate computations of the tax in a particular decedent's estate as there are transferees of the decedent's property.