133 Misc. 718 | N.Y. Sur. Ct. | 1929
The executor and trustee appeals from the order assessing transfer tax upon the following grounds: (1) That the
The decedent died on May 12, 1926. By his will he established a trust of his entire residuary estate, the income to be paid to the testator’s son, Howard W. Kenly, for life. The remainder is concededly contingent and may ultimately vest in persons taxable in the five per cent class. The testator further provided that the trustee might make such payments of principal to the son as the widow of the testator should direct.
All three grounds of the appeal are denied. The residuary estate of the testator amounted to $19,425.22. The appraiser has reported as taxable against Howard W. Kenly the present value, as certified by the State Superintendent of Insurance, of a life, interest in this fund after making allowance for trustee’s commissions. The value of the life estate, so certified by the Superintendent of Insurance, is $15,004. The taxing order has assessed a tax against the life tenant on this amount less the statutory exemption allowed him. The order further temporarily assesses against the trustee for the benefit of a person in the five per cent class a tax on the full undiminished value of-the fund. The taxing order is proper. The interest of the life tenant accrued on the death of the testator and was properly valued as of that date. (Matter of White, 208 N. Y. 64.) Likewise, pursuant to section 230 of the Tax Law, the contingent remainder was properly temporarily taxed against the trustee at its full undiminished value. The fact that, during the period intervening between the date of death of the testator and the date
The executor, however, may properly apply for a modification of the order in accordance with the vesting of the remainder interest.
Submit order denying this appeal and affirming the taxing order.