Estate of Bushnell

2 Ohio N.P. (n.s.) 673, 1905 Ohio Misc. LEXIS 186
CourtClark County Probate Court
DecidedFebruary 6, 1905
StatusPublished

This text of 2 Ohio N.P. (n.s.) 673 (Estate of Bushnell) is published on Counsel Stack Legal Research, covering Clark County Probate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Bushnell, 2 Ohio N.P. (n.s.) 673, 1905 Ohio Misc. LEXIS 186 (Ohio Super. Ct. 1905).

Opinion

Geiger, J.

Asa S. Bushnell died testate on the 15th day of January, 1904. His will was probated on the 22d day of January, 1904, and letters testamentary thereupon issued to the executors named in said will.

The testator in his will devises certain personal property and real estate in fee simple to his wife, Ellen L. Bushnell; also certain real estate to his son, John L. Bushnell, upon complying with certain conditions to be performed by him at any time within five years. Certain smaller bequests are made of personal property. The residuary clause devises all the rest and residue of the testator’s estate to his wife and three children in fee. The power is given to the executors to sell real estate not specifically devised, and distribute assets in kind. No bequest [675]*675is made by the testator of any interest contingent upon any life estate, all bequests being made in fee, and the only conditions imposed upon any are those imposed upon the son, to pay certain charges against real estate within the term of five years.

The inventory of the estate discloses chattel property valued in the neighborhood of two million dollars, and the real estate devised was worth at least two hundred thousand dollars. The executors, in pursuance of their trust, distributed the personal estate of said decedent, as directed by the will, after the passage of the act “to impose a tax upon the right to succeed to or inherit property,” approved April 25, 1904, Yol. 97, page 398, Ohio Laws.

The executors filed their final apeount on the 12th day of December, 1904, nnd the same was set for hearing on the 12th day of January, 1905. Having some doubt as to the liability of said estate to pay the direct inheritanse tax, the executors filed in the probate court, on December 15, 1904, an application praying that the court find that the estate is not chargeable with the direct inheritance tax.

The auditor of state, through a representative of the attorney-general, appeared to contest this claim of the executors, and the question has been argued at great lngth both orally and by brief, and submitted to the court.

Section 1 of the act, stripped to its skeleton, provides as follows :

‘ ‘ The right to succeed to or inherit' property within the jurisdiction of this state * * * which shall pass by will or by the inheritance laws of this state, or by deed, # * etc., * * * to the use of certain relatives of a descendant, shall be taxed * * * ; and all administrators, executors and trustees shall be liable for all such taxes, with interest, as hereinafter provided, until the same shall have been fully paid. Such taxes shall become due and payable immediately upon the death of the decedent, and shall at once become a lien upon said property.”

It is evident that the word “descendant” above quoted should read “decedent.” ■

[676]*676It is claimed upon the part of the executors that, Gov. Bushnell having died prior to the 25th day of April, 1904, the right to receive any portion of his estate by those designated in the will is not subject to the direct inheritance tax. Upon the part of the state, while it is conceded that the right to succeed to or inherit the real estate devised by said will is not subject to the tax, it is claimed that the right to succeed to the personalty, which was administered by the executors and distributed subsequent to the passage of said act, is subject to the tax.

It is evident that the statute intends to cover the disposition or devolution of property, either of a.testate or intestate, and that given by grant to take effect after death, although the words used “to succeed to or inherit” do not strictly embrace all such transmissions of property.

“A succession tax may be defined as a governmental impost duty or excise upon the privilege secured by law to devisees, legatees, grantees, heirs and personal representatives of taking, holding and enjoying all property real and personal or any interest therein, passing by will, by intestate laws or by grant or gift made inter vivos, and intended to take effect at or after the death of the grantor.
‘ ‘ The succession tax is also variously called a succession duty, a legacy tax, a collateral inheritance tax, and a transfer tax.” 27 Am. & Eng. Ency., 337.
‘ ‘ Succession duty is a tax placed on the gratuitous acquisition of property which passes on the death of any person by means of a transfer (called either a disposition or a devolution) from one person (called the predecessor) to another person (called the successor).” Hanson’s Death Duties, 40.

It is thus seen that these taxes can very properly be denominated ‘1 Death Duties, ’ ’ as the death of some one is the occasion of their imposition, though the right of succession is the thing taxed.

It is argued by the executors that to tax the right to succeed to or inherit the property of this decedent distributed after the passage of the act, he having died prior thereto, would be retroactive and contrary to the Constitution. This tax is a tax upon a right or franchise — the right to receive property. If the Legis[677]*677lature should see fit to tax the right of the distributee to take possession of the personal property after the same had been administered by the executors, I do not believe that such provision would be unconstitutional. Our Supreme Court, in the ease of State, ex rel, v. Ferris, in 53 O. S., page 314 (on page 325) say:

“Properly understood, it is not the right to transmit, but the right and privilege to receive, that is taxed. When the right to receive the property is considered, it is clear that the right is distinct and separate from the property itself, and the state may tax this right to receive property, and this is so whether the property is disposed of by the owner during his lifetime or at his death. This right to receive property is under the control of the Legislature, and it has the power to regulate and lay such burdens thereon as it may see fit, within the provisions of the Constitution.”

And on page 335:

“It follows, therefore, that imposing the t'ax in question upon the right to receive property, does not render the act unconstitutional. ’ ’

An act imposing a tax upon an estate probated but not distributed before the passage of the act, is constitutional, as it is perfectly competent for the state to tax at any time during the course of administration and before final distribution, although the property may have vested at the death of the deced-at. Gelsthorpe v. Furnell (Mont.), 39 L. R. A., 170-175; In re Seamen, 147 N. Y., 69-73; Carpenter v. Com., 17 Howard, 456.

°As is said in Section 69, Dos Passos on Inheritance Tax Law, “the question as to whether an estate vesting or undistributed before the passage of the act becomes subject to taxation, seems to be purely one of legislative intent. Acts which impose a tax upon estates vesting or undistributed before such acts become operative, though retroactive, are held to be constitutional.” Our own Legislature has recognized this principle in the amendment to the collateral inheritance tax, Yol. 94, page 101, Ohio Laws, in which the second section provides that the exemptions provided for in the act shall extend to all property falling within [678]

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Bluebook (online)
2 Ohio N.P. (n.s.) 673, 1905 Ohio Misc. LEXIS 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-bushnell-ohprobctclark-1905.