Land Title & Trust Co. v. McCoach

127 F. 381, 13 Pa. D. 355, 1904 U.S. App. LEXIS 4608
CourtU.S. Circuit Court for the District of Eastern Pennsylvania
DecidedJanuary 20, 1904
DocketNo. 52
StatusPublished

This text of 127 F. 381 (Land Title & Trust Co. v. McCoach) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Land Title & Trust Co. v. McCoach, 127 F. 381, 13 Pa. D. 355, 1904 U.S. App. LEXIS 4608 (circtedpa 1904).

Opinion

J. B. McPHERSON, District Judge.

The plaintiff is executor of the estate of George M. Troutman, who died March 5, 1901, leaving a wife and lineal descendants to survive him. The relevant provisions of his last will, together with the other facts necessary to be known in order to understand the present controversy, will appear in the following paragraphs from the plaintiff’s statement:

“By said will, a copy of which is hereto annexed and made a part of this statement, after sundry specific bequests, he provided, inter alia, as follows:
“‘Thirteenth. All the.rest residue reversion and remainder of my estate, real and personal, whatsoever and wheresoever and of which I may die seised possessed or in any way entitled to, I give, devise and bequeath unto my executors, hereinafter named, their heirs executors, administrators, successors and assigns forever, in ¡.rust nevertheless ¡.o collect and receive the rents, interest, income, dividends and profits thereof and after first deducting all expenses attendant upon the execution of the trust to pay the same unto my said beloved wife Maria E. Troutman for and during the full end and term of her natural life in at least quarter yearly payments.
“ ‘And from and immediately after the decease of my said wife, then in trust to divide the said rest residue and remainder of my estate into as many equal parts and shares as there shall be children of mine then living and lawful issue of deceased children, such issue taking such share only as their parent would have taken if living.
“ ‘And the shares happening to my children in such division to continue to hold in trust to collect and receive the interest, rents and income thereof and pay over the same unto my said children during the terms of their respective natural lives for their respective use, benefit and behoof and so that the same shall not be liable for their debts, contracts or engagements by assignment, anticipation or otherwise and so also that: the shares of my daughters shall not be subject to the control or interference of, or liable for tbo debts, contracts or engagements of any husband they may have or take. And the shares so happening to my said children from and Immediately after their respective deaths to hold in trust for all their children then living and the lawful issue of such of them as may then be deceased, their heirs, executors, administrators .and assigns forever, in equal parts and shares, so nevertheless that such issue take and receive such part and share only as his her or their deceased parent would have taken and received if then living, for the purposes hereinafter set forth, that is to say, as to the shares of the issue born before my decease of suy of my children, to hold the same in trust for such issue during their re,[382]*382spective natural lives upon the same trusts as hereinbefore set forth with respect to the shares of my children during their lives and after the decease of such issue respectively, then in trust to grant, convey, assign and pay the said shares respectively unto all their respective lawful issue in equal parts and shares, absolutely and in fee, such issue taking by representation and not per capita. And as to the shares of the issue born after my decease, of any of my children, to grant, convey, assign and pay the same unto such issue, their heirs, executors, administrators and assigns forever.
“ ‘And as to the shares haiipening in the division of my residuary estate after the decease of my wife unto grandchildren or remoter descendants of mine to hold in trust for the following purposes, that is to say, the shares happening to grandchildren or remoter descendants born before my decease to hold upon the same trusts above set forth with respect to the shares of the issue born before my decease, of any of my children taking in the division aforesaid and the shares happening to grandchildren or remoter descendants born after my decease to hold upon the same trusts above set forth with respect to the shares of the issue born after my decease of any of my children taking in the division aforesaid.’
“By said provision of said will the said George M. Troutman ‘gave the entire net income of his residuary estate to his wife for life, and provided for the division of such income after her death among his descendants living at the time of her death. The interest of his said descendants in said residuary estate was therefore necessarily not vested, but wholly contingent upon their surviving his said wife. Said wife is still living, and said interests have therefore not yet vested.
“By the act of Congress approved the 22d day of June, 1902, entitled ‘An act to provide for refunding taxes paid upon legacies and bequests for uses of a religious, charitable, or educational character, for the encouragement of art,’ etc., ‘under the Act of June 13th, 1898, and for other purposes’ (United States Statutes at Large, 57 Congress, page 406), it was, inter alia, provided as follows :
“ ‘And no tax shall hereafter be assessed or imposed under said Act approved June 13th, 1898, upon or in respect of any contingent beneficial interest which shall not become absolutely vested in possession or enjoyment prior to said July 1st, 1902.’
“On December 8, 1902, the defendant, claiming to act under and by virtue of the provisions of the act of Congress approved June 13, 1898, entitled ‘An act to provide ways and means to meet war expenditures and for other purposes’ (United States Statutes at Large, 55th Congress, vol. XXX, page 448, etc.), and of other Acts of Congress, assessed upon the plaintiff, as trustee as aforesaid, an internal revenue tax of $12,86l'04, as the tax payable to the United States upon said estate under said act. In making up said assessment the defendant undertook to value and assess for taxation the interests of the descendants/of the said George M. Troutman in his residuary estate after the death of his wife, and included the amounts so ascertained in said assessment. Plaintiff admitted that there was due upon sundry specific bequests under the will of the said George M. Troutman internal revenue tax upon said estate aggregating $1,421.51, and paid said amount to defendant on January 5, 1903. Defendant declined to accept said payment as in full for the internal revenue tax due upon said estate under said act, and demanded from plaintiff the additional sum of $11,439.53. Plaintiff declined to pay said sum. Thereupon defendant assessed a penalty of five per cent, for nonpayment of said sum within ten days, making the total assessment $12,011.51, for which sum, on the 27th day of April, 1903, defendant levied a distress upon plaintiff. Plaintiff thereupon paid said sum under protest, and filed with the defendant its appeal, and its claim as for taxes improperly paid, as required by the acts of Congress in such case made and provided, claiming that said interests of the descendants of the said George M. Troutman were, by virtue of the act of Congress approved June 27, 1902, above set forth, exempt from liability for taxation, inasmuch as they did not become absolutely vested in said descendants, in possession or enjoyment, prior to July 1,1902.
“The said defendant, however, under the direction of the • collector of internal revenue of the United States of America, has refused to allow the ap[383]

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Cite This Page — Counsel Stack

Bluebook (online)
127 F. 381, 13 Pa. D. 355, 1904 U.S. App. LEXIS 4608, Counsel Stack Legal Research, https://law.counselstack.com/opinion/land-title-trust-co-v-mccoach-circtedpa-1904.