New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-10
Vanderbilt INHERITANCE TAx.
STATUS OF A TRUST FUND DISCUSSED Be
FORE SURROGATE FITZGERALD

FORE SURROGATE FITZGERALD
The viii OF Cornelius Vanderbilt was the subject
Of discussion in the Surrogate's Court yesterday.
when Surrogate Fitzgerald was asked to pass on
the question to whether fund OF S. 600 Ol3
created by William H. Vanderbilt the father Of
Cornelius Vanderbilt. is subject to payment Of the
inheritance Surrogate Fitzgerald after hear
ing argument, reserved hts decision
Henry 3. Anderson. counsel for the heirs OF Cor
neiius Vanderbilt applied 10 Surrogate Fitzgerald
to declare this trust fund exempt from the pay
ment, on the ground that when William r. Van
derbilt died there statute with reference to
any transfer tax, and that the trust fund was
created by his will the inheritance could not be
collected II William H. Vanderbilt appointed
Cornelius Vanderbilt of the fund, dis
pose OF II among or ali of his children as he
might desire.
Mr.. Anderson said the bequest was really to
the grandchildren Of William H Vanderbilt Under
the laws IN force when William II. Vanderbilt died
requests to his nneaI descendants were not tax
able by inheritance tax. II Cornelius Wander
bit had died before 1897, when the transfer be-
came law. this trust fund could not be held 10 be
taxable.
said, admitted 10 probate, and when that was done
his grandchildren had certain vested rights. and
a9c~ at that time Thus CorneIi1s vanderbiI,'s
children became entitled the fund long be-
tax on property but a tax on the right 10 succeed
10 propertya tax on the source Of the dtle 10 the
The title he said was derived from the will Of
William II. Vanderbilt. The transfer tax the
price set by the State upon the admission of the
Will TO probate. and when the viii was admitted TO
probate the title of his grandchildren 10 this trust
fund became complete
The State Controller opposed the motion TO de-
clare the trust fund exempt from taxation. and his
counsel Jabish Holmes, IT. said there could be no
question as 20 the Legality OF the Inheritance Tax
law Of 1887. Young Cornelius Vanderbilt received
he said $4,000 Of the fund, and the other children
OF Cornelius Vanderbilt $4,000 each The fund
could not be distributed until the death Of Cor
nelius Vanderbilt. and none OF his children could
acquired any vested interest in 4 prior 70 that
Had Cornelius Vanderbilt completely disn-
herited one OF his children" Mr.. Holmes asked
what would have been the result? He had a per-
feet right 10 do S II he thought 1T What then
would have become Of the vested title claimed BY
Nj Anderson TO exist their grand
fathers will probated? He says that the chill
Iren obtained title when William h Vanderbilt 3
III was probated- AS a matter OF law the children
had no vested rights under that will
Counsel then conrended that the trust fund was
subject 70 the transfer Just If II had actu-
ally been owned by Cornelius Vanderbilt.
Had Cornelius Vanderbilt left nothing 10 his son
Cornelius" counsel asked, could he complain?
Certainly not His right 70 a share in the fund
will"
Counsel said that the similar TO Mrs
Cornelia NJ. Stewards will under which a dis
cretionary power given TO Judge Hilton TO dis
tribute portion OF her estate by mis- will In that
case II was held the legarees had no title until
Judge Hilton had exercised his right Of distribu-