Case ID: ny_236/html/0517-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

In the Matter of the Transfer Tax upon the Estate of Andrew Carnegie, Deceased. State Tax Commission, Appellant and Respondent; Home Trust Company, as Executor, et al., Respondents and Appellants.
    
      Transfer tax — trust created by deed inter vivos — method of computing legacies to charitable corporations — real estate owned by decedent and wife as tenants by entirety — federal estate tax not deductible.
    
    
      Matter of Carnegie, 203 App. Div. 91, affirmed.
    (Argued April 17, 1923;
    decided May 1, 1923.)
    Appeal from an order of the Appellate Division of the Supreme Court in the first judicial department, entered November 10, 1922, modifying and affirming as modified an order of the New York County Surrogate’s Court which assessed a transfer tax upon the estate of Andrew Carnegie, deceased. The appeal of the state tax commission was based upon three grounds: The exclusion by the courts below from the taxable estate of certain interest in a trust fund created by the decedent by deed inter vivos, the trust being known as the pension trust. The method approved by the courts below for computing the legacies to charitable corporations, and the exclusion by the courts below from the taxable property of certain real estate owned by the decedent and his wife as tenants by the entirety. The appeal of the executor and Louise W. Carnegie was based upon the refusal of the courts below to deduct the federal estate tax paid by the executor.
    
      John B. Gleason and Lafayette B. Gleason for State Tax Commission, appellant and respondent.
    
      Elihu Root, Jr., Robert P. Patterson and Wilkie Bushby for executor et al., respondents and appellants.
   Order affirmed, without costs; no opinion.

Concur: His cock, Ch. J., Hogan, Pound, Crane and Andrews, JJ. Dissenting: Cardozo and McLaughlin, JJ., from so much of order as denies deduction of federal tax before imposition of state tax.