12 Mills Surr. 513 | N.Y. Sur. Ct. | 1914
The executors appeal from the order fixing tax, and allege that the appraiser erred in appraising certain securities constituting a part of the assets of decedent’s estate at their value on the date of decedent’s death. In an affidavit submitted to the appraiser the executors allege that the value of these securities decreased between the date of decedent’s, death and the date of distribution among the legatees to the extent of $11,658.90. The order appealed from assessed a. tax upon the value of the securities as of the date of decedent’s death. For the reasons stated in my decision in Matter of Josephine Penfold, published herewith, the value of the securities, on the date of decedent’s death constitutes the basis of valuation upon which the transfer tax is imposed. The appeal on this point is therefore disallowed. The executors also allege in their notice of appeal that the appraiser erred in refusing to deduct from the assets of the estate in this state the amount, of inheritance taxes imposed by foreign states upon the transfer of so much of the estate as was subject to taxation in the foreign states. I had occasion to examine this question in Matter of Penfold, 81 Misc. Rep. 598. In that matter I stated that I was reluctantly forced to the conclusion that under the transfer tax statute and the decisions of the appellate court of this state, the inheritance taxes paid to a foreign state are not a proper deduction from the assets of the estate in this state-in ascertaining its value for the purpose of assessing a transfer tax under the provisions of our Transfer Tax Law. The executors attempt to distinguish that matter from the matter-under consideration by stating that the decedent in his will directs that inheritance taxes assessed upon the legacies given by him shall be paid out of his personal estate. The effect of-this provision in the will is to increase the value of each legacy by the amount of the transfer tax imposed upon it. Such a provision in the will does not make the amount paid out of the residuary estate to the financial officers of foreign governments
Order affirmed.