The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-03-27
INHERITANCE TAX LAW
WHERE 1T DOESN'T APPLY
The Law Does Not Contemplate a Tax
on Real Property in Cases OF Direct
sce or here the Estate
L. Not More Than 1880.

Judge Lindsay yesterday afternoon
made an important decision under the
Inheritance tax law. in which he held
that the law does not a
tax upon real property in cases OF di-
rect descent, and that it does not apply
at all TO an estate where the real mar
ket value of such estate does not ex-
coed in value $500. The decision was
made in the case of the estate of Jere-
miah b. Wilcox. deceased. The court
made the following order in the matter:
"A citation was issued upon the ap-
plication Of Thomas II. Kinds. county
treasurer of Silver Bow county Mon
tana, on the 9th day of December. 1897.
directed 20 Clara NJ. Wilcox. executrix
of the estate of jeremiah Il. Wilcox. de-
ceased, to show cause why she should
not be required to pay to said county
treasurer the tax alleged to be due
from said estate by virtue of the pro-
visions of An act to establish a tax on
direct and collateral inheritances,'
passed by the Fifth legislative assem-
bly, of the state of Montana.
The answer of the executrix filed
in this court on Dec. Is. 1897. sets forth
that there is no personal property of
any value belonging to the estate or
left by the said jeremiah Il. Wilcox.
but that the whole property of said
estate consists of real property, as
shown by the inventory and appraise-
ment on file. 1t is also alleged that
there being no personal property of sand
estate. no inheritance tax whatever is
due or payable. and further that the
clear market value of the estate, after
deducting the debts of said escate, is
less than the sum of $500.
THE questions which on the 18th Cay
of February. 1898. were presented TO
the court for its determination are:
"First-Does the law contemplate n
tax upon real property in cases of c.
rect descent?
"Second-If real property is subject
to the inheritance tax. does the law gp-
ply in this instance. when. by the an
swer of the executrix IL appears, and IL
not denied, that the clear market value
of the estate is less than the sum If
$500?
"Third-In arriving at the clear mar
ket value. is the Indebtedness Of the
testators to be first deducted?
Section / of the act under consider
alton. that being the authority for the
imposition of the tax, provides that all
property which shall pass by will or by
the intestate laws of the state by rea-
son whereof any person shall become
beneficially entitled To any such prop
erty. or to the income thereof. other
sstah " VI loi tht USE Vi Ills % ntI
kindred. mentioned In the statute, shall
be subject To a tax of five dollars on
every hundred dollars of the market
value of such property. and that when
the beneficial interests 10 any personal
property. or the income therefrom. shall
pass to or for the use of such kindred, |
the rate of tax shall be one dollar on
every hundred dollars of the clear mar
ket value of such property. The same
section provides that an estate which
may be valued at a less sum than
1880 shall not be subject to any tax
or duty.
by his will. jeremiah b. Wilcox be-
queathed all of his property to his wild
ow. Clara NJ. Wilcox, for herself and in
trust to a certain portions of the in
come of said estate to Clara ~. Wilcox.
a daughter OF said deceased and OF
said Clara NJ. Wilcox. so that i'm pass
ing upon this matter the court is to be
governed by that part of the first sec
ton of the law which provides a less
rate OF taxation. in event the property
be found subject to the imposition of a
tax. than IL the decedent had be-
Queathed his property to a range
1T Is manifest. from a perusal of the
act in question. that nc tax is intended
TO be imposed upon real property.
where. as i'm this instance. the estate
Is devised and b~equeathed to the direct
descendants of the decedent. and that.
IN similar cases. when personal prop
erty is included in the assets of the es-
tate and such personal property is OF a
value less than the sum OF s.. 500. the
estate is subject to no tax.
In so hiding upon the question first
submitted. IL is unnecessary to deter
mine the second and third propositions
presented for consideration. yet. in
passing. j shall remark hat IL the
property here involved was a subject
OF taxation. the sum of such tax could.
under the law. be ascertained only after
the clear market value OF the estate
arrived at. by a deduction of the
debts and liabilities of the