OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

~%!i!i 

103 
Au we understsad the isots submitted the propsrty 

ww derised by the Qolased to the United Ohrirtlsn LUutomry 

8miaOy of Indifmapolia, Indiane. It oontnined no restrlstlan 

or prorision whatweYar oonoerning nhtiher or not the 8am 

should be spent 5.n Texas. 

&Sicle 7ll7 of Veran*s Annotated itevlwd Civil 

8tatuteu provi4es in part au follarrr 

*All property withhi this Stste . . . whioh 8hall 

l mLl, upon pawing to or for the we mf mny 

~~o~~*&mratlon or awoolation, be rubfeat to a tu 

for the boruiit or the State’8 Wnm.i Rommo Zun6, in 

aoooPtmloa with the rollowing c1Msir10st1on. . . .* 

*If paeobag to or,iw th+ we or hha United SAate8, 

bo or Ser the une of si& othu! persw or x-slims, odueetiowl or obuitable ~~sditm OF lmaitutio~r, of tso 

any other prmn, eorpmation or 8saaolai&on not inoluUe4 

5.n nny of the olesser mentiione~ in the pneodl 

3 

portianr 

OS the original Aot Imom an Chapter 29 ef the vmerp1 

Laws of the Seoond Called 5e88ion ot thr Thlrty-dghth 

Legid.nhwo, the tax Wall be, 

“59 011 wy tslw in exeom of 9500 a nd no t l xer eUing 

~1 0,000. . . . 

It fs the opinion oi W&s 8eepartaunt that the derire 

in question ia we whloh &mms usdsr the o.la8siiioatU#n 8eb up 

5.n the rirst pet of ArtlcZe 7122, *uprat in that it paraw 

pro exty to or for the use of a ohariteblo organfsatian oae, inrtltutfon. St find nothing howover ia ebbs deriee nhlah u8ul6 mko 

it one paaaing property to e charitable arganiaation to bs ustd 

within this State. ft is urged, &weveI?, wren, thccqh tlw deriso 

thee not recplre the money to be apsnt in Texas, that Ur fs6t 

the maucsy will be so spent, A roakllng of the Various eBnr#ifleations set up by Arttale 7128 thxough 7122, insltmive, el.om&g 
Benorable George ii. Sheppard, gage 3 

&i~pra tnat the- tax la to be oomputed in aooordenoe dth the 

woriling of the devise itself. Xi the rule be otherwiao, 

awmy ~8selng to an unole or aunt would not have to pay the 

tax aohsdule set Out in Utiole 7121 on an affibatit or suoh 

wc&.eor atantthnttha aMeywaalnSeott0 be spent upon a 

brother or si8ter at the 6eoaese6, uhlah beer8 a a!aaller tex 

l ehedule a8 808, out in mole 7120. 

Prior to 1933 8 aimllm l xuphion was oontalnod 

in the Texne Inheritance Tax Law la rerebnoo to d&tin8 to 

mli(lioua, eduoetlonal or ohqrkteble orgeair;etiona. Pnaer 

the exemption (18 it Wgl reeb it uaa naoeaaary that t&a 8evlae 

be to M in8titUtiOn looatad iA thla IStat tid alao it wan 

woenary that the boqgmt, deriaa or gift was to ba uaeed 

dthln this Btate. Tho Auatio Court of Cirll Appoala aons6ru.d 

tbia bIbngtlon in the aaae of Ban Jeointo #et&me1 Beak v. 

Sheppard, 125 8. W. (26) 715. Un4er the feota ia that o8ae 

thn dsriw of one-half of the boooeaed98 a8tete we8 to aa out 

OS Stat6 oorporation or(ganlnotlS6~ rellgiow, bsnevelent aq4 

e&wational purpoae8. The oourt held that auoh inatitutba 

was not looatbd dthln this Btetr. The aomt aim atet& aa 

follws 1 

140r Aid the will. of Xllro~ nquire the ruada 

derived rrom hla tlevin to be wed in Texas, Clenrly 

under the barter an4 s&l& will tie bsnefiotary owporation could bara und the derim anywhere the dlreotora 

theroof rhould determine in their tweblngs in Ohio.* 

The eboro dia c ua al raPPptlcm o d was mum&l to ita 

pnaent form ae quoted supra by the I+%& Leprial8turo ia 19.933. 

HOwever, the preaemt examptlon rouuirea that thr der@?a bo OM 

whlah is to be used dthin t&la State and in this reapeotthe 

pre8ent exemption is ldantioal with the like requuirenont in the 

prior l xemptbn. Therefore t&a oourt*s atetment oohoornlag 

the berise in the San Jaointa Mational Bank tram I.8 pertinent 

In eowtti~ the preeent exemgtlan. 
rionotable Omme H. Sheppard, p-0 k, 

Under the deviw in question the Indiana organieat,j,on has the authority' to spend the rooeebs fromtha aale of 

the proprty anywhere that it SeeB I ! t to do em. The devise 

ia not one which requixea that the money be apentrrithin this 

5tatie. It ta the opinion Of t:iia ikp8rtnsnt, therefo&ya, that 

fbe property paselag la thePsriaa in qumatfon is c ub l ot to 

the Texas Inheritan F on lta Value la exoes8 0r 0 f 00. 

Pours very truly 

APPROVEDOCT 26, 1940 

lzLL.dA*u 

ATTORNEY GZB%RAL OF TEXAS 

COMMIITEC