The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1899-01-25

6HCtel tJlS puIl w Ah "S""Na '.s'saS
after the passage Of :hls act from any per-
son possessed Of such property ci her ey
will or by tue irtostaie,iaws of any state
or territory. Does this reference to sum
pxeeet!ing $40 600 In, actual valne mean
the value OF the entire personal property
left by,a person OF his death or does it
mean the actual value Of his property rc-
manning for distribution to k!s legatees
and distribution afler sho payment Of all
debts standing against tho estate.
"This question Is now before this office
In the following casa suLm tied al tho i'll.
stance OF un execu or Of a will
A diol. leaving u pa-s ,nal estate ofi$i2.-
700 and debts amounting to about $500,
leaving only 81, 600 to be paid to his heirs
and legatee,. Will the executors havo to
lay my revenue tax nnier the act of June
15 1882"
Tho question presented by tho commits
sloner Is in substance, as 10 whether the
tax provided for in Section 70 to be levied
upon tho gross amount Of q deceased per-
sons es' ate, which shall have como into
tho hand, of the administrator or execu-
tor. or upon such portion of tho estate rs
con ,titutes lesaces or remains 10 be paid
out to distributors.
So much of section 90 ms Is necessary to
quote in passing upon this question is
quotod
THAT any person o, persons having in
charge or trust. rs administrators, exec
utors or trustees, any legacies or distribu-
tive shares arising from personal proper v,
where the whole amount of such personal
property AZ aforesaid shall exc,ed the sum
OF $4,000 in nctual value, passing, after
tho percentage of this act, from any por-
son posses: :ed OF such property, Oil her by
will or the intestato Ia VS. Of any state or
territory. or any personal property or in.
serest therein, transferred by decd, grant,
bargain sale. or gift, made or intended to
take effect iu posse sion or enjoyment
nft,r the doath Of tho grantor or bars Amer
10 any person or persons, or to any body
or bodies polite or corporate. in trust Or
otherwise shall be, and hereby arc made
subject TO duty or tax, to b. paid to the
Unitei States" etc.
Tho language Of the act appears to me
to bo plain, so much SO that it dec, not
admit Of u doubt.
1t refers not to tho estates Of deceased per-
S ns, which may como to tho hands of ad-
iHini'trators or executors. tut to lcgacies
Ct '!i'tributive shares arising from perso-
nai property In charge Of administra ors,
executors or trustees The law does not
say that estates Of tsstators or intestates
shall pay tax, but that legAces or dis
trbutivo shares arising from personal
property, where the whole amount Of
such personal property as aforesaid shall
exceed the sum of $4,000 in actual value,
are taxable. Tho term as aforesaid, used
IN the portion Of tho law above quoted,
cannot refer to the estate from which a
legacy or dstrlbutlve share Is derived, but
1t refers TO the personal property constitute
ing tho legacy or distributive share
am confirmed In this construction OF
this act by the further provision of the
section In regarl . the amount of tax to
bo paid, for In each clause desig mating
such Jax the words used are "whsre tho
porson or persons entitled to any benehc-
iul interest In such property shall b."
etc. 1t Is the interest to which the bcne.
flclary is entitled which the law intended
to make the subject of taxation.
For instance, by way Of illustration, Of
n testator, with an estate worth $4,000,
makes bequest Of s2,. 600 to person, and
the residue Of tho estate is consumed In
goes into the hands of tho executor. and
yet onl: the legacy Of $a50)O would be
taxable under the provisions Of this act.
1 can illustrate further by taking q
specific legacy Of jewelry or plate. This
il taxable OF not according to its actual
value. II such legacy is worth exceeding
$40 900 then it is Liable to tho tax: II not
It mot taxable.
ho same principle applies rs to the es-
tates of intestates no matter what the
gros, amount which comes to the hand,
Of the administrators may be. 1t is the
amount which remains for distribution,
after tho payment Of debts, which the law
intends to tax.
An illustration: Suppose m estnto
which comes to the admin strator consists
OF 100000 In money or othor personal
property. and the intestate owes upwards
of slOOOOO. Tho entire estnto will bo con-
sumoI In the payI.ent of debts. In such
cases tho provision section % does not up
ply because there Is nothing for dlstr'bu-
tion; there can be no dstrlbutive shares.
To levy tax upon the 500. 1000 In such
case would not DO taxing n legacy CT dis
tributIve share arising from personal prop
er;y but 1t would really be levying tax
upon the property OF a deceased person
which ought TO 60 to pay his debts.
1t would indirectly be . tax upon the
creditors OF q deceased person and not
upon lsgatee or Distributes. However,
on the other hand, II the estate which
comes to the hands Of the administrator Is
Of the value OF 100000 and $4,000 will
pay the:debts and costs Of administration, |
leaving 1900 for distribution to those en-
titled. such distributive shares of this $5O,-
900, as the amount exceeds $4,000 would |
be subj.cs to tax under the act 1t is
the net amount which remains in the |
hands Of the administrator for distribu- |
tlon to the next of kin or those entitled |
which constitutes distributive shares in
the estate of deoedents
The word passing which is used in tho
act. Is also explanatory OF Its meaning. 1t
too refers to legacles or distributive shares
"passlnG' aftcr the passage Of this act. A |
legacy passes from ths testator to the
lesatee. A distrlbutivs sharc passes from