State ex rel. Hunt v. American Bonding Co.

Citations

• 16 Ohio N.P. (n.s.) 497

Syllabus

<p>Taxation — Inheritance Taxes Are Excise Taxes — Why Paid by Executor Instead of Distributees — Liability Therefor as Between Two Sure- , ties, One on the Administration Bond and the Other on the Bond for Sale of Real Estate.</p> <p>1. Where an executor gave a general administration hond in the sum of two thousand dollars with one bonding company as surety, and afterward gave .bond in the sum of forty-six thousand dollars for sale of real estate with another bonding company as surety, and distributed the entire proceeds of the estate to legatees named in the will without paying the collateral inheritance tax due to the state of Ohio, and thereafter died insolvent and all the legatees are without the jurisdiction of the state, both surety companies are liable as co-sureties in their respective proportions to the state for payment of such collateral inheritance tax, notwithstanding the executor had personal property in his possession sufficient to pay such collateral inheritance tax before the sale of the real estate from the proceeds of which the legacies were paid.</p> <p>2. Inheritance taxes are taxes on the right and privilege to inherit or succeed to property and are excise taxes and not taxes on the property received.</p> <p>3. Although an executor is made liable under the statute for payment of collateral inheritance tax, such tax is not paid on account of the estate, biut on account of the legatees or distributees whom the state is unwilling to trust.</p>