Evening capital news. (Boise, Idaho) 1901-1927, 1919-04-27
Interesting Legal Question De-
cided by Attorney Generals
Department = Basis For
Placing Inheritance Tax.
CONSIDERED WORTHLESS
After Death of Owner Valuation
Jumps to Over $2O,OOO-Is-
sue Arises as to Whether to
Base Tax at Date of Death or
Later,

The valuation of mining property of
a deceased person should be taken
when the owner dies, as the basis for
establishing the amount of Inheritance
tax to be collected from the estate or
the heirs, even though it appears to
be worthless, and not later, when the
valuation jumped to $4,000 or more.
The attorney generals department
issued an interesting opinion on this
question Saturday. 1t was written bv
Dean Driscoll, chief assistant attor-
ney general.
VALUE INCREASES.
The query was as to the proper
basis of valuation for the purpose of
fixing the transfer or inheritance tax
under state laws in an estate wherein
1t appears that the bulk consisted of
mining property comparatively worth
less at the time of decedent's death
and now worth in excess of $4,000.
LEGISLATIVE INTENT.
Commenting on the issues involved
the opinion says In part:
TT Is our opinion that 1t was the
intention Of our legislature that the
value should be taken at the time of
the death of the decedent, irrespective
of any subsequent increase or depre-
citation in value. Our reasons are
principally two: In the first place, I'M
der our law the title to property of
decedent vests In the heirs immediate-
~ on bis death. 1t IS, OF course, sub
1ect to administration and the pay
ment of debts, but this does not dis
turb the actual passing of the title.
The property is then transferred as
much as 1t Is after decree of distr,bu-
tion Is entered. The decree merely
fixes and confirms the transfer.
IF, as pointed out by our supreme
court, the tax is tax levied on this
right of transfer, certainly the value
of the things transferred will be taken
as Of the time when the right of trans
fer was operative and not at some
time after it is fully exercised.
Again, the inheritance tax statute
itself, as pointed out above, says that
the tax is due Immediately upon the
death of the deccdent. This seems to
us to necessarily imply that the values
on which 1t is fixed are to be taken
at that time
WHAT CALIFORNIA SAYS,
The California court supports us
In this view. In the estate of John r.
Hite. deceased, 113 Pac. 1912, 80 L. r.
A. OR. s. 1867, it is said:
1t is thoroughly settled that the
tax is to be assessed on the value of
the property at the time of the death
of the testator or intestate, and that
SUBSEQUENT appreciation or deprecia-
ton in value is immaterial Getting
authorities) The right of the state
to the tax accrues at the moment of
death, and is measured as to any
beneficiary by the value at that time
of such property as then actually
passes to him.
THE same case is reported in Ann.
Cases, 1912 G, p. 1914, and is followed
by an exhaustive note or annexation
of all the authorities. The annota-
tor says: The general rule, followed
In the reported case, is that a dece-
dants estate, for the purpose of de-
termining the amount of a succession
or inheritance tax, Is to be valued as
of the time of the decedent's DEATH
The authorities are fully collected in
the note.
EXCEPTION MADE.
We think it should be added, how
ever, that in cases where it appears
there has been very great apprecia-
tion in the value of the estate over
the supposed value at the time of the
death, considerable caution should be
exercised by the probate courts in
assuming themselves as to what the
actual market value at the time of
the death really was. The fact of the
sudden increase might in some cases
be taken as rather strong evidence