Virginia Code 58.1-908: Nonpayment of tax; lien for unpaid taxes; certificate of release from lien
A. A lien shall arise as follows upon all property, real or personal, located in the Commonwealth of Virginia, of every decedent having a taxable estate who fails to pay the tax imposed by this chapter:
Terms Used In Virginia Code 58.1-908
- City: means an independent incorporated community which became a city as provided by law before noon on July 1, 1971, or which has within defined boundaries a population of 5,000 or more and which has become a city as provided by law. See Virginia Code 1-208
- Decedent: A deceased person.
- Decedent: means a deceased person. See Virginia Code 58.1-901
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Nonresident: means a decedent who was domiciled outside of the Commonwealth of Virginia at his death. See Virginia Code 58.1-901
- Personal estate: includes chattels real and such other estate as, upon the death of the owner intestate, would devolve upon his personal representative. See Virginia Code 1-233
- Personal property: All property that is not real property.
- real estate: includes lands, tenements and hereditaments, and all rights and appurtenances thereto and interests therein, other than a chattel interest. See Virginia Code 1-219
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Resident: means a decedent who was domiciled in the Commonwealth of Virginia at his death. See Virginia Code 58.1-901
- Taxable estate: means "taxable estate" as defined in § 2051 of the United States Internal Revenue Code of 1954, as amended or renumbered, or the successor provision of the laws of the United States. See Virginia Code 58.1-901
1. In the case of a nonresident decedent having a taxable estate a lien shall not arise automatically upon the death of the decedent.
2. In the case of a resident or nonresident decedent, such lien shall attach to the personal estate of the decedent only upon the Department’s filing a memorandum in the clerk’s office of the county or city wherein the decedent resided, and to the real estate only upon the filing of a memorandum in the clerk’s office of the county or city wherein such real estate is located.
Such lien, once it attaches, shall be enforceable for a period not to exceed ten years from the date of death of the decedent.
B. Such part of the property of a decedent as may at the time be subject to the lien provided for under subsection A shall be divested of such lien to the extent used for payment of charges against the estate or expenses of its administration allowed by the court having jurisdiction thereof.
C. Such part of the personal property of a decedent as may at the time be subject to the lien provided for under subsection A shall be divested of such lien upon the conveyance or transfer of such property to a purchaser or holder of a security interest for an adequate and full consideration and such lien shall then attach to the proceeds received for such property from such purchaser or holder of a security interest. Real property shall not be divested of such lien except as provided in subsections B and D of this section.
D. When any lien under this section has attached and the Department is satisfied that the tax liability, if any, of the estate has been fully discharged, the Department shall issue a certificate releasing all property of such estate from the lien herein imposed; or, if the Department is satisfied that the tax liability of the estate has been provided for, it shall issue a certificate releasing any surplus property of such estate from the lien herein imposed.
Code 1950, § 58-238.9; 1978, c. 838; 1979, c. 567; 1984, c. 675; 1987, c. 373.