Estate of Parrott

SEAWELL, J.

Mary Emilie Parrott died March 1, 1922, a resident of the county of San Mateo, this state. The fair market value of her estate was appraised by the inheritance tax appraiser at $1,301,470.69.

The sole question presented by this appeal is whether the appraiser should have made a deduction of $260,000, as evidenced by a joint and several promissory note made by her and her co-maker, from the market value of said estate, instead of a deduction of but one-half of said amount, to wit, $130,000, which deduction was allowed by him as a debt owing by her at the time of her demise. The appeal was taken from that portion of the order of the court confirming the inheritance tax appraiser’s report allowing a deduction of but $130,000.

The case is submitted upon an agreed statement of facts. Decedent left a brother surviving her, Joseph A. Donohoe. Prior to her death she and her said brother made, executed and delivered their joint and several promissory note, secured by a mortgage upon real property owned by them in equal undivided interests, to the Hibernia Savings & Loan Society, or order, in the principal sum of $340,000. At the date of decedent’s death said promissory note of $340,-000 had been drawn upon by decedent and her said brother, in equal amounts, to the extent of $260,000, which latter sum constituted the joint and several indebtedness of said decedent and her said brother, and was due and payable at the date of the death of the former. In due course thereafter, said Hibernia Savings & Loan Society, mortgagee, filed its claim against the estate of said Mary Emilie Parrott, deceased, for the full amount owing on said note, to wit, $260,000. On September 20, 1922, the claim was allowed by the executor and executrix and subsequently was allowed and approved by the court. Thereafter the principal sum due on said note was increased to $287,000. The solvency of Donohoe at all the times herein mentioned is an admitted fact.

On January 9, 1925, pending the settlement of the estate of Mary Emilie Parrott, deceased, Joseph A. Donohoe, the

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co-maker, paid individually to said Hibernia Savings & Loan Society one-half of the entire joint and several obligation of himself and decedent, which payment included $143,500 as principal, and $509.20 as interest, aggregating $144,-009.20. On March 10, 1925, the heirs and successors in interest of decedent paid on account of the balance due on said joint and several transaction $130,932.75, and agreed to pay the balance of the principal and interest to said note-holder and mortgagee and to hold said Joseph A. Donohoe harmless from any liability thereon.