13 B.T.A. 274 | B.T.A. | 1928
Lead Opinion
The first of the two issues is whether the respondent erred in his valuation of the decedent’s 96 shares of common stock of the George E. Skinner Co. at $360 a share. Upon this question of fact we are of opinion that the evidence does not establish a lower value.
The petitioner’s second point is that it is entitled under section 403(a) (3), Revenue Act of 1921, to a deduction of the value at the time of death of an interest bequeathed to the town of Braintree. The interest arises from the provision of the will to the effect that if the daughter should die without issue the property in which she has a life estate shall go to the town. By deposition of physicians it was testified without objection that at the time of decedent’s death the daughter had no children and would have none. Thus, it is urged that the bequest to the town was substantial and hence deductible from the gross estate in determining the taxable net estate. Respondent’s position is simply that the law presumes conclusively, irrespective of the views of the witnesses, that children may be born to the daughter.
We have examined the many decisions, both English and American, cited by counsel for both parties, and in our opinion they support the respondent’s view. In the United States the question has generally arisen in cases where it has been sought to vest in a remain-derman title or possession of property during the life of the intermediate tenant. The courts have refused to recognize the possibility that no further issue would be born to claim the remainder. This rule has become uniform and well established. It has been founded on the practical necessity for maintaining the title to property free from confusion and also upon social considerations. The cases cited by petitioner to indicate that the rule is not universal do not in our opinion affect the general doctrine. The intendment of the revenue act is to be read in the light of the well recognized rule rather than of the minor exception, and we see no reason to assume that Congress intended to ignore the rule in order to allow a deduction for the contingent interest of a municipality or charity. The testator intended the bequest to be contingent and the deduction of the revenue act goes no further.
Judgment will he entered for the respondent.