148 Iowa 60 | Iowa | 1910
Louisa C. Crawford died testate May 13, 1908. Of the provisions of her will the- only one requiring consideration upon this appeal is the following: Item 14: “At the death of my husband, George W. Crawford, and when our homestead situated at No. 605 South Garfield avenue, is sold i't is my wish and I hereby direct that from the proceeds of same, the sum of $2,000.00 shall be given to the 'Burlington, Iowa, branch of the Sal
Thereafter, difference of opinion having, arisen upon the liability of said estate or a portion thereof to the assessment of a collateral inheritance tax, the executor filed in said probate proceedings another petition, setting up said paragraph of the will and the construction placed thereon by the court, and after -alleging that the Treasurer of the State claimed said legacy to be subject to the collateral inheritance tax, and that such liability, was denied by the beneficiaries of the gift, asked the court to determine whether said sum or any part of it w-a-s subject to be so assessed. To this proceeding the Salvation Army appeared and answered alleging that it is a charitable and religious organization which, though incorporated in New York, is engaged in charitable and religious work in Bur
The statute in question (Code Supp., section 1467) exempts from the inheritance tax all gifts and bequests “to or for charitable, educational or religious societies or institutions including hospitals, public libraries and public art galleries open to the free use of the public not less than three days of each week, within this state,” etc. Stated briefly, the claim of the State Treasurer is that the exemption, does not apply to a gift or bequest for the benefit of a corporation not organized under the laws of this state, and that the bequest here’in question is of that" character. It must be admitted, we think, that a legacy to' or for the Salvation Army or other religious or charitable institution organized under the corporation laws of another state is not exempted from the inheritance tax. Such seems to be the express language of the act itself, and such is the holding of courts in other jurisdictions where like questions have arisen. In re Prime’s Estate, 136 N. Y. 347, (32 N. E. 1091, 18 L. R. A. 713); Humphreys v. State, 70 Ohio St. 67 (70 N. E. 957, 65 L. R. A. 776, 101 Am. St. Rep. 888); People v. Society, 87 Ill. 246. In none of these cases upon which -appellant relies to sustain its contention in the case at bar has the court been called upon to say whether a gift or bequest in the nature of a trust to be expended within the state for purely local benefit and local purposes may be held exempt. In Humphreys v. State, supra, the court, in unholding the general rule and
If, as we are inclined to hold, the deduction here suggested is sound, the bequest made by Mrs. Crawford may in our judgment be fairly held to come within the exemption. The gift is not to or for the Salvation Army. That body is given no power or authority to take it out of the jurisdiction of the state or to expend it for any other than the local purposes mentioned in the will. The trustee named for this purpose is not the Salvation Army, but the Burlington, Iowa, branch thereof. Whether such local branch has a distinct organization with any independent or autonomous functions is not shown in the record; but this it not a material inquiry, for, if the gift be construed as intended to aid the work of a definite local charity, the fact that the trustee name'd in the will has no legal existence or is without power to accept or administer thé trust is immaterial, for the court will not permit the trust to fail for want of a qualified trustee and will itself name one if it becomes necessary. The distinction between a gift made generally to or for a charitable society organized in another state, and a gift made to aid the work of a strictly local charity with which the foreign society may be associated, is not a violent one, and promotes the apparent intention of the Legislature to relieve from the burden of
It follows that the appeal can not be sustained, and the judgment appealed from is affirmed.