Bartlett v. Gill

Citations

• 221 F. 476
• 1915 U.S. Dist. LEXIS 1600

Syllabus

<p>1. Internal Revenue >@=>8—Legacies Subject to War Revenue Tax-Shares in Real Estate Trusts.</p> <p>A testator left to Ms children shares in a number of so-called real estate trusts, organized and owning property in Massachusetts. Such associations are not provided for by the laws' of the state, but are formed for the purpose of owning, managing, improving, and selling real estate, the title to which is in trustees, and the interest of each member is represented by transferable shares. Provision is made for the exemption of the trustees and shareholders from personal liability, and the trustees are made active managers of the business, subject to control, in varying degrees, by the shareholders. In some cases the time of termination of the trust is fixed, in others not. In some cases it is provided that on such termination the property shall be divided among the shareholders; in others that it shall be sold and the proceeds divided; in some sale is discretionary with the trustees; and in still others there is no provision on the subject. In some cases the trustees are given discretionary power to sell property, and in others authorization by the shareholders is required. Some of the trusts in which testator held shares had considerable, sums of money on hand at the time of his death to be invested in real estate, for which contracts had been made. Held, that under the law of Massachusetts, as settled by decision, tlio testator’s interest as a shareholder in said trusts, in so far as their property consisted of real estate, was not personal property, but was an equitable interest in real estate, and was not subject to legacy tax, under War Revenue Act June 13, 1898, e. 44-8, § 29, 30 Stat. 461, and that all money held by such trusts to be invcsLed iu real estate, either by the fundamental agreement or by contracts made, was to be considered real estate by equitable conversion.</p> <p>@=jFor other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Index