Riley v. Robbins

THE COURT.

These proceedings were commenced by the petition of Ray L. Riley, State Controller, for determination of the inheritance tax due on property left by Hortense L. Robbins, who died intestate on or about August 12, 1929. The court appointed an inheritance tax appraiser, who reported that the personal property left by the decedent was, at the time of her death, of the total market value of $436,310.19; that allowable deductions amounted to $9,952.41 ; that “the clear market value subject to tax” was $434,-319.71; that the property passed share and share alike to the respondents (surviving husband and adult son and daughter) and that each share was subject to an inheritance tax of $5,784.13, the total tax being $17,353.39. The respondents objected to the report and appraisement on the ground that expenses of the decedent’s funeral and last illness were not allowed as deductions from the market value of the taxable property. Hearing was had, the respondents’ objections were sustained and judgment was entered allowing the deductions of $11,595.15, the stipulated amount of funeral and last illness expenses, from the figure shown by the appraiser as the clear market value subject to tax, thus reducing the tax to $16,540.71, the share of each respondent becoming $5,513.57. From this judgment allowing the deduction the petitioner has appealed. It was stipulated that the expenses of the funeral and last illness were paid by the decedent’s husband and that he was financially well able to pay them.

The appellant contends that, inasmuch as the husband is obligated to pay these expenses without being entitled to be reimbursed from the estate of the wife (which is conceded by the respondents), these items were improperly allowed as deductions.

[287]

Prior to amendment on August 14, 1929, section 2 of the Inheritance Tax Act (Stats. 1921, p. 1500, as amended in 1925 and 1927 [Codes and Gen. Laws, Deering’s Consol. Supp. 1925-1927, p. 2027]) provided:

Section 2. “A tax shall he and is hereby imposed upon the transfer of any property, real, personal or mixed, or of any interest therein or income therefrom, in trust or otherwise, to persons, institutions or corporations not hereinafter exempted, to be paid to the treasurer of the proper county, as hereinafter directed for the use of the state,