Year: 1869

SIR: Your attention is herewith
called to the provisions Of the United
States Excise law relative to tax on
legacies and distributiye shares. The
124th and 125th sections of the act of
June 80, 1860, provide that any person
or persons having I'm charge OF trust,
as administrators, executors, or trus-
tees of any legacies or distributiye
shares arising from personal property
of any kind whatsoever, where the
whole amount of such personal prop
erty exceeds the sum of one thousand
dollars in actual value, passing from
any decedent, either by will or by the
intestate laws of any State or Terrific
~, t0any person or persons, or to any
body or bodies polite or cOrpOIRtef IN
trust or otherwise, shall be subject to
duty or tax, to be paid to the United
States before distribution, as follows !:


First. Where the person entitled to
any beneficial interest in such prop
erty is the lineal issue or lineal ances-
tor, brother or sister, to the person
who died possessed of such property,
at the rate of one dollar for each hun
dred dollars of the clear value of such
interest.


Second. Where the legatee or dis
tributee is a descendant of brother
or sister of the person who died
possessed, at the rate of two dollars
for each hundred dollars Of the clear
value of such interest.


Third. Where the legatee or dis
tributee is a brother or sister Of the
father or mother, or descendant of a
brother Orsister of the father OF moth
er of the person who died possessed, +,
at the rate of four dollars for each
hundred dollars of the clear value of
such interest.


Fourth. Where the legatee or dis
tributee is a brother or sister of the
grandfather or grandmother, or a des-
cendant of the brother or sister of the
grandfather or grandmother of the
person who died possessed, at the rate
of five dollars for each hundred dol
lars of the clear value of such interest.


Fifth. Where the legatee or dis
tributee is in any other degree of col
lateral cOns2nguinity than is herein
before stated, or is a stranger in blood
to the person who died possessed, or is
a body polite or corporate, at the rate



of the clear value of such interest. All
legacies or property passing by will, or
by the laws of any State or Territory
to husband or wife of the person who
died possessed, are exempt from tax.


BY the provisions of the act of July
IS, 1866, any legacy or share of person
al property passing to a minor child Of
the person who died possessed, and
who died subsequent to July 81, 1866,
is exempt from tax, unless sach legacy
or share exceeds the sum of one thou
sand dollars, in which case the excess
only above that sum is liable.


The return must be made and the
tax paid upon each legacy or distribu-
tive share of the personal property
/ liable to the tax before distribution
! thereof, and the administrator or exc
cutOr will then file his receipt in set
tlement of his account, which will bC
allowed as part payment of the distri
butive share. Should no administra
tiOn be taken out, the law provide:
that the party or parties shall be liable
who undertake to distribute or settle
the estate.


By the terms of the act of July Is
1866, which apply to all cases where
the person who died possessed dice
subsequently to July 81, 1866, the tax
is due and payable whenever the par
ty interested in any legacy or distri
butive share becomes entitled to the
possession or enjoyment thereof, or tC
beneficial interest in the profits accru
ing therefrOm, and the tax is deduc
tible from the particular legacy Ol
| share on account of which the same j:
charged.


SUCCESSION TAX.


The 126th to 151st sections Of the ac
of June 30 1854, provide for the pay
ment of tax upon real estate by al
! persons, bodies corporate, companies
or associations, who become entitled
in possession to real estate or the in.
come thereof, or to moneys to arise
from the sale of such estate, or to al
interest in personal property subject
| to any trust for the Investment there
of in real estate by reason of the death
of any person, and by all persons and
corporations who receive a gift or dis
/ tributiOn of any interest in real estate
while the grantOr is living, as well a:
/ those who receive cOnveyances of rea
estate which. i'm fact, either by the
/ face of the instrument itself, or by
some secret arrangement, is to take
effect upon the death of the grantOr.
No such taxes are payable by 9
widow for any interest that she may
receive from her husband, but inter.
ests in real estate passing from wife Il
husband are subject to the succession
tax.


The rates of tax are the same as
those provided for Iegacies or distribu
tive shares of personal property, ex'
cept that in case Of real estate, wheT
the descendant, devisee, or grantee, j:
q brother or sister of the predecessor
the tax is two dollars on q hundred
dollars of value.


AS the United States have a lien up
on both personal and real estate fol
the taxes upon the same, respectively
and as the parties liable to pay thi,
tax are subject to penalties, and faith
full administration cannot be perform,
ed by allowing the tax and penalty tC
be assessed by the assessor through
your neglect, which assessment. anC
penalty may be larger than the facts
Tif known and duly returned to the
assessor would warrant, you are re
spectfully requested to notify the as
sistant assessor of the division in
which the deceased lived at the tins
of his decease, and the assessors o.
any and all districts where the TeRl
estate Of the decedent is situate, Of
your aPpOintmentas as executor, admin,
istratOr, or trustee, and TO furnish
him with the amount of theinyentOFy
and a copy of the deed or will, if any
and with a statement Of the names o.
the grantees, devisees, or heirs, of the
real estate passing to them, so far a:
you have knowledge Of same. Thi,
course will have n tendency to secure
you as well as the government, ant
the honest taxpayer who may be ighO
rant of his duty.


The return of succession tax mus
be made by the party entitled to pOss
ession of the real estate, or his lega
representative; and the real estate
must be described with sufficient Ger
tainty TO identify the same.


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