229 Mass. 140 | Mass. | 1918
By the residuary clause of the will as modified by the second, fourth, fifth and sixth articles, the testator created a trust for the benefit of his wife and children. The trustees were to hold the estate for twenty-five years after his death and until the' death of his wife, but in no event longer than twenty-one years after the death of the last survivor, and pay from the net yearly income $50,000 annually to his wife for life, and to his children the remainder in equal shares but not to exceed $100,000 (changed by the codicil to $150,000) in any one year for a period of ten years, the issue of any deceased child to take by right of representation. If any further income accrues it is to be added to prin
By the first question the executors ask for instructions as to “What interests passing to the children of the testator under said will are presently taxable? ” The interest of the children in the gifts of income for the first ten years, which by her death includes that portion provided for the widow, having vested in possession is subject to the inheritance tax imposed by St. 1909, c. 490, Part IV, § 1, as amended by St. 1912, c. 678, § l,,in force when the testator died. Attorney General v. Stone, 209 Mass. 186. State Street Trust Co. v. Treasurer & Receiver General, 209 Mass. 373. The petition, although brought under St. 1909, c. 490, Part IV, § 21, contains no claim for abatement for which provision is made in § 20, and which may be enforced in equity in the court of probate. Attorney General v. Roche, 219 Mass. 601, 602. And, having been duly certified by the Tax Commissioner, those taxes are payable by the executors in performance of their duty as required by statute.
The second and third questions are, “Whether your petitioners are entitled to have the tax upon the entire estate certified and determined,” and “Whether your petitioners are entitled to a
The petitioner and co-executor George W. Mitton, a beneficiary of income and one of the remaindermen, also asks whether he “is entitled to have the tax upon his future interest determined and certified if he is willing to waive the right to a possible diminution in the value of his interest by the birth of additional issue.” By § 6, “Except as hereinafter provided, said tax shall be assessed upon the actual value of the property at the time of the death of the decedent. In every case where there shall be a devise, descent, bequest or grant to take effect in possession or enjoyment after the expiration of one or more life estates or a term of years, the tax shall be assessed on the actual value of the property or the interest of the beneficiary therein at the time when he became entitled to the same in possession or enjoyment. The value of an annuity or a life interest in any such property,
But the petitioner cannot come into possession of the remainder until the termination of the limited life estates, which are to run for nearly a generation. It is then that the tax is to be assessed and payment made from the trust fund by the trustee then in office, and as this event has not happened he must resort to § 7, which reads as follows: “Any person or persons entitled to a future interest or to future interests in any property may pay the tax on account of the same at any time before such tax would be due in accordance with the provisions hereinbefore contained, and in such case the tax shall be assessed upon the actual value of the interest at the time of the payment of the tax, and such value shall be determined by the Tax Commissioner as hereinafter provided. In every case in which it is impossible to compute the present value of the future interest the Tax Commissioner may, with the approval of the Attorney General, effect such settlement of the tax as he shall deem to be for the best interests of the Commonwealth, and payment of the sum so agreed upon shall be a full satisfaction of such tax.” The right conferred is for the benefit of those who are liable in the future for an inheritance tax, and, if the present value can be computed, a devisee or legatee is given the right to have his interest in an estate in expectancy presently taxed instead of being postponed until he comes into possession when § 6 governs. If an estate in remainder is appraised simultaneously with an annuity or life interest, its value is determined by deducting from the entire estate the value of the annuity or life estate. Dow v. Abbott, 197 Mass. 283, 288. Howe v. Howe, 179 Mass. 546, 550.
If the beneficiary’s particular estate is not for life but is limited to a less period, nevertheless it is an “interest therein less than an absolute interest,” and no sufficient reason is shown why ordinarily valuation cannot be based on its probable duration calculated in accordance with the tables. It is an interest which takes “effect in possession or . . . actual enjoyment after the expiration” of one or more intermediate estates. The trust, however, as we have said, runs for a period of twenty-five years, for the first ten years of which the principal is to be increased by
The statute, however, further provides that the commissioner, if “it is impossible to compute the present value,. . . may, with the approval of the Attorney General, effect such settlement of the tax as he shall deem to be for the best interests of the Commonwealth.” But from the very language of the statute whether such action shall be taken rests in Ms sound discretion and judgment, and Ms refusal to comply with the request or demand of the petitioner that a settlement be effected is not reviewable. French v. Jones, 191 Mass. 522, 532, and cases cited. The decree of the Probate Court dismissing the petition should be affirmed.
Ordered accordingly.