SECTION 1-109. COST OF LIVING ADJUSTMENT OF CERTAIN DOLLAR
AMOUNTS. Uniform
Probate Code
(a) In this section:
(1) “CPI” means the Consumer Price Index (Annual Average) for All Urban
Consumers (CPI-U): U.S. City Average — All items, reported by the Bureau of Labor Statistics, United States Department of Labor or its successor or, if the index is discontinued, an equivalent index reported by a federal authority. If no such index is reported, the term means the substitute index chosen by [insert appropriate state agency]; and
(2) “Reference base index” means the CPI for calendar year [insert year immediately preceding the year in which this section takes effect].
(b) The dollar amounts stated in Sections 2-102, [2-102A,] 2-202(b), 2-402, 2-403, 2-405, and 3-1201 apply to the estate of a decedent who died in or after [insert year in which this section takes effect], but for the estate of a decedent who died after [insert year after the year in which this section takes effect], these dollar amounts must be increased or decreased if the CPI for the calendar year immediately preceding the year of death exceeds or is less than the reference base index. The amount of any increase or decrease is computed by multiplying each dollar amount by the percentage by which the CPI for the calendar year immediately preceding the year of death exceeds or is less than the reference base index. If any increase or decrease produced by the computation is not a multiple of $100, the increase or decrease is rounded down,
(a) In this section:
(1) “CPI” means the Consumer Price Index (Annual Average) for All Urban
Consumers (CPI-U): U.S. City Average — All items, reported by the Bureau of Labor Statistics, United States Department of Labor or its successor or, if the index is discontinued, an equivalent index reported by a federal authority. If no such index is reported, the term means the substitute index chosen by [insert appropriate state agency]; and
(2) “Reference base index” means the CPI for calendar year [insert year immediately preceding the year in which this section takes effect].
(b) The dollar amounts stated in Sections 2-102, [2-102A,] 2-202(b), 2-402, 2-403, 2-405, and 3-1201 apply to the estate of a decedent who died in or after [insert year in which this section takes effect], but for the estate of a decedent who died after [insert year after the year in which this section takes effect], these dollar amounts must be increased or decreased if the CPI for the calendar year immediately preceding the year of death exceeds or is less than the reference base index. The amount of any increase or decrease is computed by multiplying each dollar amount by the percentage by which the CPI for the calendar year immediately preceding the year of death exceeds or is less than the reference base index. If any increase or decrease produced by the computation is not a multiple of $100, the increase or decrease is rounded down,
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if an increase, or up, if a decrease, to the next multiple of $100, but for the purpose of Section 2-
405, the periodic installment amount is the lump-sum amount divided by 12. If the CPI for
[insert year immediately before the effective date of this section] is changed by the Bureau of
Labor Statistics, the reference base index must be revised using the rebasing factor reported by
the Bureau of Labor Statistics, or other comparable data if a rebasing factor is not reported.
[(c) Before February 1, [insert year after the year in which this section takes effect], and before February 1 of each succeeding year, the [insert appropriate state agency] shall publish a cumulative list, beginning with the dollar amounts effective for the estate of a decedent who died in [insert year after the year in which this section takes effect], of each dollar amount as increased or decreased under this section.]
Legislative Note: To establish and maintain uniformity among the states, an enacting state that enacted the sections listed in subsection (b) before 2008 should bring those dollar amounts up to date. To adjust for inflation, these amounts were revised in 2008. Between 1990 (when these amounts were previously adjusted for inflation) and 2008, the consumer price index (CPI) increased about 50 percent. As a result, the following increases in the UPC’s specific dollar amounts were adopted in 2008 and should be adopted by a state that enacted these sections before 2008:
Section 2-102(2) should be amended to change $200,000 to $300,000; Section 2-102(3) should be amended to change $150,000 to $225,000; and Section 2-102(4) should be amended to change $100,000 to $150,000. Section 2-102A, if enacted instead of Section 2-102, should be amended accordingly.
Section 2-201(b) should be amended to change $50,000 to $75,000.
Section 2-402 should be amended to change $15,000 to $22,500; Section 2-403 should be amended to change $10,000 to $15,000; and Section 2-405 should be amended to change $18,000 to $27,000 and to change $1,500 to $2,250.
A state enacting these sections after 2008 should adjust the dollar figures for changes in the cost of living that have occurred between 2008 and the effective date of the new enactment.
Comment
Automatic Adjustments for Inflation. Added in 2008, Section 1-109 operates in
conjunction with the inflation adjustments of the dollar amounts listed in subsection (b) also
[(c) Before February 1, [insert year after the year in which this section takes effect], and before February 1 of each succeeding year, the [insert appropriate state agency] shall publish a cumulative list, beginning with the dollar amounts effective for the estate of a decedent who died in [insert year after the year in which this section takes effect], of each dollar amount as increased or decreased under this section.]
Legislative Note: To establish and maintain uniformity among the states, an enacting state that enacted the sections listed in subsection (b) before 2008 should bring those dollar amounts up to date. To adjust for inflation, these amounts were revised in 2008. Between 1990 (when these amounts were previously adjusted for inflation) and 2008, the consumer price index (CPI) increased about 50 percent. As a result, the following increases in the UPC’s specific dollar amounts were adopted in 2008 and should be adopted by a state that enacted these sections before 2008:
Section 2-102(2) should be amended to change $200,000 to $300,000; Section 2-102(3) should be amended to change $150,000 to $225,000; and Section 2-102(4) should be amended to change $100,000 to $150,000. Section 2-102A, if enacted instead of Section 2-102, should be amended accordingly.
Section 2-201(b) should be amended to change $50,000 to $75,000.
Section 2-402 should be amended to change $15,000 to $22,500; Section 2-403 should be amended to change $10,000 to $15,000; and Section 2-405 should be amended to change $18,000 to $27,000 and to change $1,500 to $2,250.
A state enacting these sections after 2008 should adjust the dollar figures for changes in the cost of living that have occurred between 2008 and the effective date of the new enactment.
Comment
Automatic Adjustments for Inflation. Added in 2008, Section 1-109 operates in
conjunction with the inflation adjustments of the dollar amounts listed in subsection (b) also
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adopted in 2008. Section 1-109 was added to make it unnecessary in the future for the ULC or
individual enacting states to continue to amend the UPC periodically to adjust the dollar amounts
for inflation. This section provides for an automatic adjustment of each of the above dollar
amounts annually.
In each January, the Bureau of Labor Statistics of the U.S. Department of Labor reports the CPI (annual average) for the preceding calendar year. The information can be obtained by telephone (202/691-5200) or on the Bureau’s website.
Subsection (c) tasks an appropriate state agency, such as the Department of Revenue, to issue an official cumulative list of the adjusted amounts beginning in January of the year after the effective date of the act. This subsection is bracketed because some enacting states might not have a state agency that could appropriately be assigned the task of issuing updated amounts. Such an enacting state might consider tasking the state supreme court to issue a court rule each year making the appropriate adjustment.
In each January, the Bureau of Labor Statistics of the U.S. Department of Labor reports the CPI (annual average) for the preceding calendar year. The information can be obtained by telephone (202/691-5200) or on the Bureau’s website
Subsection (c) tasks an appropriate state agency, such as the Department of Revenue, to issue an official cumulative list of the adjusted amounts beginning in January of the year after the effective date of the act. This subsection is bracketed because some enacting states might not have a state agency that could appropriately be assigned the task of issuing updated amounts. Such an enacting state might consider tasking the state supreme court to issue a court rule each year making the appropriate adjustment.
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