182 So. 821 | La. Ct. App. | 1938
A question of law only is propounded by this appeal. Since the right of the State to enforce collection of the tax involved therein is challenged, and because the exact question raised, under the state of facts disclosed by the record, has not heretofore been passed on by the Supreme Court of the State, we certified said legal question to that court and requested instructions thereon. These are now before us.
The Supreme Court in its instructions has clearly stated the undisputed facts of the case, the issue tendered by the pleadings, with reasons and citations in support of its conclusions, which we here copy and adopt as our own, viz.:
"Ponder, Justice.
"The Court of Appeal, Second Circuit, under the provisions of Section 25 of Article 7 of the Constitution of 1921 certifies this case for instructions.
"The question of law that the Court of Appeal desires instructions on arises out of the suit of State of Louisiana v. Succession of James H. Brewer, No. 5713 on the docket of the Court of Appeal. The facts stated by the Court of Appeal are to the effect that James H. Brewer, a resident of Louisiana, died therein intestate and without issue. James H. Brewer during the lifetime of his wife effected life insurance in excess of $25,000 which was in force when he died. His wife was named beneficiary in the policies. She died before he did. The policies all provide that, `In event of the death of any beneficiary before the insured the interest of such beneficiary shall vest in the insured, etc.' James H. Brewer at his death left two brothers who are his next of kin and who as his heirs inherit all of the property of the succession. The present contest grows out of the effort of the Tax Collector of Rapides Parish to force the heirs to pay the inheritance tax on the proceeds of the life insurance policies devolving upon them as such heirs less the exemption provided by law. The heirs resist the imposition of the tax on the ground that the proceeds of the life insurance are exempt from liability from the tax under the provisions of Act No.
"The beneficiary named in the policy, the wife of the deceased, having died prior to the deceased under the provisions of the policies the interest of the beneficiary would vest in the insured and the proceeds of the policies would be payable to and become a part of the estate of the deceased. It would be by inheritance as heirs that the brothers would acquire the proceeds derived from the policies. It is only as legal heirs of James H. Brewer that they inherit and as such they would be liable for the inheritance tax which is a privilege tax upon the right to inherit.
"In the case of Succession of Cotton,
"In the Succession of Dumestre,
"In the instant case under the provisions of the policies the interest in the policies had vested in the insured, James H. Brewer. At James H. Brewer's death the proceeds of the policies would inure to his estate. It would be to the same effect had the policies originally been made payable to the estate of the deceased. The heirs are claiming the proceeds of this insurance not on the ground that they are named as beneficiaries but on the ground that they are the only heirs of the decedent and are entitled to all the effects of the decedent's succession. It is only by virtue of the fact that they are the only heirs of James H. Brewer that they would be entitled to the proceeds of the life insurance policies.
"The heirs would not be exempt from payment of the inheritance tax under *823
the provisions of Act No.
"Our answer is, viz.: The heirs are responsible for any may be compelled to pay the tax in question."
For the reasons assigned in the instructions given us by the Supreme Court, and in obedience thereto, the judgment appealed from is affirmed.
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