### THEA~ORNEY GENERAL OFTEXAS CiROVEB

SELLERS A~JSTXN 11.TEXAR ,-..__._ ------



### HonorableGeorge H,.Sheppard $0-24-48 to Sheppard;re estate Comptrollerof PublicAccountsofNelliePollard Daily Austin,Texas ~ ._ Dear Sir: OpinionNo.~0-5997 lb: ApplicationofA%idle _,~ 7125, V:A.C.S.,-toan inheritance tax on the estate 

## of Aliiemff

i Blav6hs,

## deceagmd,who &ad +ecelved, within fiveyears of her death, an estate from a prior 

### decedentonwhich a taxwas paid in Indiana.
From yourrequest for an opinion dated 

### May 1, 1944, we summarizethe followingfacta,upon rhiah thisopinion is based8 Al~ice

0. Slavena received 

### certaintrust funds in the sum of Q28,589.~0 from 

### theEstate of Mrs. CarrieBrown, who ‘diedon.

November 17, 1939, a reaident...of Winchetiter, Indiana. This eatateraa administeredunder she laws tif Indiana,and an inheritancetaxwaspaid under the Indiana laws. Mice 0. Slavens died onNovember 25, 1943.

Your question is: e1.etheEstate ofMrs. Slavena entitled to a deduction in.the.amount-ofthe trust funds that shereceived fromMrs.Brown'sEstate,uhowas a'non-resident, aspropertypreviouslyfaxed-,by-the State of Indianawithin aperiod of fiveyears?"

Prior to lq29-therewas no provision in our statutes for the exemptionof estatesonwhich inheritancetaxeshad been paidwithin any specifiedperiod of time. By Acts 1929,Honorable George H. Sheppard, page 2 O-5997

41st Leg., Ch. 26, p. 60, entitled "An Act to Amend Article 7125 of the Revised Civil Statutes of l925.so as to exempt estates upon which Inheritance Taxes have been levied within ffve years from the date of the second passage of said estates, and declaring emergency,' Article 7125 was amended as folPowst

" The only deductions permissible under,ihis'law are the debts due by the estate

. . .and an amount equal to the value of any property forming a part of the gross estate situated In the United States of any person who died within five (5) years prior to the death of the decedent; this deduction, however, shall only be allowed where an inheritance taxi 9mnosed under this or anv prior act of the Legfslature was paid by the estate of the prior dececent and only in the amount of the value placed by the Comptroller on such property in determining the value of the gross estate of such prior decedent.

. .*' (Emphasis ours) The emergency clause-of that act recites that: "The fact that the present method of ascertaining the amount of deductions allowed is unfair and inequitable and places undue tax burdens upon estates passing in rapid succession creates an emergency . . *' ^ The clause "Where an inheritance tax imposed under this or any prior act of.the Legislature was paid" is a very Common one in sfmilar statutes of other states, from which it was undoubtedly adopted. See 57 A. L. R. 1099; 114 A.L.R. 1306; Re NilsonPs Estate, 201~Iowa 1033, 204 S.W. 244; 61, C. J. 1621, Sec. 2402. Under the decfsions, th,e meaning of such clause is quite clear.

7125, (Aots 1,';9t9i the 46th Legislature again amended Article Ch. 13, Sec. 2, p. 646). This Act fs,entitled in act e . .amending Article'7125 Revised civil Statutes of-the State of Texas, 1925, as amended qcts, 1929, Forty-fSrst Leg., ch. 26, p. 60, Sec. 1, so as to more clearly~.definedeductionspermissible for fnheritance tax purposes. e 0"s and Article 7125 now reads as follows:Honorable George H. Sheppard, Page 3 

### O-5997

n under Eh e . . an .The only deductions permissible

s Law are the debts due by the estate an amount equal to the value of any ^

. property r’ormlng a part..oS the gross estate situated in the United States received from any person ~whodied within five (5) years 

### prior to the death of the deoedent, this 

### rsaudtlon, however, tobe only in the amount of thg value of, the property upon which an inheritance tax was actually paid and shall not include any ‘legal exemptions claimed by or allowed the helrs or 18 atees f of the estate of the prior decednet. 0 e 0 (Emphasis added) The conclusion is inee@hp&le,from this amendment deliberately omitting the clause, "Where an inheritance tax imposed under this or any prior actof the Legislature was paid”, that the Legislature intended thereby to exempt ah estate-of a prior decedent received wYthin five years, and upon which an inheritance tax was paid, even where the tax was paid to some other state.

Therefore, any part of the fund In question upon which a tax was actually paid in Indiana is exempt from taxation under the Texas state.

Trusting that this sufficiently answers your inquiryp we are, Yours very truly ATTORNEY GENERAL OF TEXAS %' Arthur L. Moller Ass,istant ALld/ffsPAM APPROVED NAY 

### 8, 

### 1944 GEO. P.mBLACKBURN (ACTING) ATTORNEY GENERAL OF TEXAS APPROVED GPiNI0N~CO~MMITTEE ~ '- BY GS,,CHAIRMAN .,