Lindblom v. Riley

STURTEVANT, J. This is an appeal from an order made by the trial court on the 30th day of July, 1940, directing the refund to Hartford Accident & Indemnity Company of the sum of $1000.85 and to Brita Lindblom and Alof Henry Lindblom of the sum of $125, alleged to be inheritance taxes erroneously collected. The controversy arose out of the following facts.

Erik Olof Lindblom died testate on September 23, 1928, being at the time of his death a resident of the county of Alameda, State of California. Probate proceedings were instituted in his estate, and on October 10, 1928, letters testamentary were granted to Central National Bank of Oakland.

The bank or its successor continued to act as executor of the decedent’s will until September 4, 1936.

An inheritance tax appraiser was appointed by an order of the probate court, filed on April 15, 1929, to appraise the assets of the estate of the decedent, and to report to the court [541]the amount of inheritance tax due upon any property passing in the probate proceedings. Thereafter, on October 2, 1929, the appraiser filed his inheritance tax report with the court.

The report found that the clear market value of the property in the decedent’s estate amounted to $235,617.83. The report also found that the inheritance tax, based on the highest rate which would be possible on the occurrence of any of the contingencies provided for in the decedent’s will, amounted to $2582.35 on the interest of Olof Henry Lindblom, an adult son of the decedent, and a like amount on the interest of respondent Brita Lindblom, and a total tax on all interests of $5194.70. On October 16, 1929, the court made its order fixing the inheritance tax. This order confirmed the appraiser’s report and fixed the inheritance tax in exact conformity with the computations made in the report. The order has never been modified and is in full force and effect.

On March 21, 1930, a payment in the sum of $3914.41 was made by the estate to the Alameda County Treasurer on account of the inheritance tax due.

On the same day the respondent Brita Lindblom, and her brother Olof Henry Lindblom, filed their written election not to pay the balance of the inheritance tax until the contingencies on which the highest tax was based actually occurred. Also on March 21, 1930, said respondent and her brother, as principals, and Hartford Accident & Indemnity Company, as surety, filed a bond securing the payment of the balance of the tax.