Montgomery's Estate

Citations

• 63 Pa. Super. 318
• 1916 Pa. Super. LEXIS 158

Syllabus

<p>Taxation — Collateral inheritance tax — Estates for life — Estates in remainder — Act of May 9, 1887, P. L. 79.</p> <p>An appraisement for collateral inheritance tax of the whole estate of a testator cannot he sustained, where it appears that the will created life estates and estates in remainder, and the will itself shows that the persons who would ultimately taire the remainders cannot he ascertained until after the death of the life tenants. Such an appraisement cannot he sustained because persons who might he remaindermen did not enter security or offer to enter security for the payment of the tax.</p> <p>Section 3 of the Act of May 6,' 1887, P. L. 79, applies to a case where both the life tenant and the remaindermen are collaterals.</p> <p>Where a will creates both life estates and estates in remainder, it is the duty of the appraiser to make an appraisement of the life interest. If he fails to do so and appraises the whole estate for the tax, the appraisement will be set aside.</p> <p>In Section 6 of the Act of May 6,1887, P. L. 79, the words “upon a condition or contingency” are to be construed so as to relate to the estate “for life or for a term of years, or for any other limited period,” previously mentioned. They are not to he construed as referring to a separate estate given upon a contingency or condition.</p> <p>Where a testator gives a life estate in his personal property to his brother, followed by a life estate to his niece with remainder to her children, if any survive her, and if none, then a remainder to the male relatives of his father hearing the family name living at the death of the brother and niece, or the survivor of them, an appraisement of the whole estate for collateral tax purposes is improper. The life estate should he appraised and taxed, hut the appraisement of the remainder must be postponed until it is ascertained who the remaindermen are to he.</p>