[Download] "Gould Et Al. v. Lynn" by Supreme Court of Montana ~ Book PDF Kindle ePub Free
eBook details
- Title: Gould Et Al. v. Lynn
- Author : Supreme Court of Montana
- Release Date : January 09, 1930
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 55 KB
Description
1. Taxation — Words & Phrases — "Inheritance tax." A tax imposed by statute on all property which shall have passed by will or any interest or income which shall be transferred by deed etc., made in contemplation of death or intended to take effect in possession or enjoyment at or after death is an "Inheritance tax" Page 146 and is imposed not on the property of the decedent, but upon the privilege of receiving property by will or succession or by any inter vivos transfer operating as a substitute for testamentary disposition. 2. Taxation — Words & Phrases — "Estate tax." An "estate tax" is a tax imposed on the privilege of transfer at death. 3. Taxation — Words & Phrases — "Transfers in contemplation of death." Under the statute taxing "transfers of property made in contemplation of death or intended to take effect in possession or enjoyment at or after death," the quoted phrase means that the title is transferred by way of trust, reservation of life estate or some other device whereby the grantor attempts to retain the beneficial interest until his death or after. 4. Estates — Words & Phrases — "Vested." An estate is "vested" when there is an immediate right of present enjoyment or present fixed right of future enjoyment. 5. Estates — Effect of present enjoyment. When there is an immediate fixed right of present or future enjoyment, an estate is vested-in possession when there exists a right of present enjoyment, and in interest when there is a future enjoyment. 6. Taxation — Effect of device securing control to transferor. The law will not permit the owner of an estate to evade the payment of inheritance taxes by any device which secures to him for life, control of the property transferred in trust and the benefit of income therefrom during life of the transferor. 7. Taxation — Passing of economic benefits most significant. Under the statute taxing transfer of property made in contemplation of death or intended to take effect in possession or enjoyment at or after the death of the grantor, the significant element in possession or enjoyment is the passing of economic benefits rather than the shifting of technical legal title, and the vested character of the right is immaterial if the right to immediate possession and enjoyment is deferred until the grantors death. 8. Taxation — When beneficial ownership occurs. The transferee becomes beneficially entitled to the property when he becomes entitled to all the incidents of ownership and not to mere bare legal title, and the time when the beneficiary becomes entitled to the income and other economic interests determines when the tax shall be imposed and the rate that is in effect at that time is the rate at which the tax is assessed. 9. Taxation — Transfer of stock created gift. The trust here created a gift to the daughter that was not taxable until death of the settlor and then at rates in existence at the time the daughter became beneficially entitled to the possession of the property or income therefrom. 10. Constitutional law — Imposition of rates held proper here. Where the settlor of the trust postponed the payment of benefits to the daughter until the death of the settlor, the imposition of inheritance tax on benefits at the rate in effect at the death of the settlor was not invalid as a taking of property without due process of law or as an impairment of contract notwithstanding subsequent rates were higher than those in effect at the time the trust was established.