DE SB26

Replaces Delaware's current estate tax apportionment statute with a comprehensive Estate Tax Apportionment Act addressing how estate tax costs are allocated among beneficiaries.

Allows decedents to direct estate tax apportionment through wills or revocable trusts; absent such directions, estate taxes are apportioned ratably among beneficiaries based on the value of their interests in the apportionable estate.

Establishes special rules for time-limited interests, generation-skipping transfer taxes, marital and charitable deductions, and "insulated property" (estate property unavailable for tax payment due to impossibility or impracticability).

Grants fiduciaries authority to defer distributions until tax payment is secured, withhold amounts from distributions, require bonds or security from distributees, and collect unpaid taxes from beneficiaries in a specified priority order.

Effective for decedents dying on or after January 1, 2014; does not apply to estates of decedents dying within three years of the effective date unless testamentary capacity was continuous thereafter.