Deyo v. Ingraham (In re Davis' Estate)

• Decision Date: 26 May 1896
• Citation: 149 N.Y. 539,44 N.E. 185
• Parties: In re DAVIS' ESTATE. DEYO, County Treasurer, v. INGRAHAM.
• Court: New York Court of Appeals Court of Appeals

149 N.Y. 539

44 N.E. 185

In re DAVIS' ESTATE.DEYO, County Treasurer,

v.INGRAHAM.

Court of Appeals of New York.

May 26, 1896.

Appeal from supreme court, general term, Third department.

Proceeding for the appraisal, under the taxable transfer act, or the estate of Katharine J. S. Davis, deceased. From an order of the general term reversing an order of the surrogate fixing the tax to be paid by Mary H. S. Ingraham (36 N. Y. Supp. 822), George Deyo, county treasurer of Ulster county, appeals. Affirmed.

Katharine J. S. Davis, at the time of her death, was a resident of Ulster county, N. Y. She died January 16, 1887, leaving a last will and testament, which, so far as material, was as follows: ‘I give, devise, and bequeath to my sister, Julia L. S. Ingraham, now the wife of Duncan Ingraham, all my real and personal estate and property, of what nature, name, or kind the same may be, for her sole and separate use and benefit, for and during the term of her natural life; and, from and immediately after her decease, I do give, devise, and bequeath the same to the children of my said sister who may be living at the time of her decease, share and share alike. And I do hereby nominate, constitute, and appoint my sister, Julia L. S. Ingraham, sole executrix of this, my last will and testament, hereby revoking all former wills by me at any time made.’ This will was admitted to probate by the surrogate's court of Ulster county February 1, 1887, and thereupon letters testamentary were duly issued to Julia L. S. Ingraham as such executrix. The testatrix, at her death, left, her surviving, Harrison H. Sudam, a brother, who died December 6, 1893; Mrs. John De Witt, a niece, who died in July, 1894; and Mrs. Ingraham, a sister, who died February 2, 1894. The latter left no children, except her daughter, Mary H. S. Ingraham, the respondent herein. After the death of her mother, the respondent was duly appointed administratrix of her estate. On July 24, 1894, she filed with the surrogate of Ulster county a petition asking for the appointment of some competent person to appraise the estate of the testatrix as provided by the inheritance or transfer tax law. In pursuance of such petition, the surrogate appointed an appraiser, by whom testimony was taken in reference to the value of the property left by the testatrix at the time of her death, but no evidence was given as to its value at the time of Mrs. Ingraham's death, or at the time of the appraisal. He made his report September 4, 1894, appraising the net value of the estate at $9,286.25, and the value of the life estate of Mrs. Ingraham at $1,100.14. The surrogate thereupon transmitted this report to the superintendent of insurance, with a request that he determine the present value of the interest of the respondent in the property as of the time of the death of Mrs. Davis. On the 13th of October, 1894, he returned the papers, with his certificate, to the effect that the present value of the interest of the respondent in the property at the time of the death of Mrs. Davis was $5,226. On the 15th of that month, the surrogate filed the report of the appraiser and the certificate of the superintendent of insurance, and made an order or decree confirming the report, fixing and assessing the cash value of the property in remainder left by Mrs. Davis to the respondent at $5,226, and the tax thereon at $261.30. He then added: ‘And the county treasurer of Ulster county, pursuant to statute, will add interest at the rate of ten per centum per annum to the amount of said tax from January 16, 1887, to the date of payment.’ On the same day, the surrogate served a notice upon the respondent of the assessment of this tax and of the provision in regard to interest. On December 11, 1894, the respondent appealed to the surrogate, specifying in her notice of appeal that ‘the grounds upon which this appeal is taken are that the interest is not chargeable or allowable on the amount of said tax at the rate of ten per cent. per annum from January 16, 1887, or from any other date to the date of payment, but that interest is allowable and chargeable upon said tax, if at all, from the date of the death of Julia L. S. Ingraham, which occurred in or about the month of February, 1894, and only at the rate of six per cent. from that date.’ Upon the hearing of this appeal, the surrogate wholly reversed the order or decree made by him October 15, 1894; and, without any proof whatever as to the then value of the property which passed to the respondent under the provisions of the will of Mrs. Davis, himself made an appraisal as of the time of the death of Mrs. Ingraham, the life tenant, by which he increased the valuation from $5,226 to $9,286.25, fixed the tax at $464.31 instead of $261.30, and directed the county treasurer to add interest thereon from February 2, 1894, the date of Mrs. Ingraham's death, at 6 per cent. for the period of 18 months, and thereafter at the rate of 10 per cent. per annum. From a portion of that decree, the respondent appealed to the general term of the Third department. She did not, however, appeal from the portion that reversed that part of the former decree which directed the county treasurer to add and collect interest at the rate of 10 per cent. per annum from January 16, 1887, to the date of payment. The general term reversed the decree appealed from, and modified the former one by striking out the clause imposing a penalty of 10 per cent. from January 16, 1887, and inserting in place thereof a provision charging interest at the rate of 6 per cent. from February 2, 1894, to the date of payment, and, as so modified, affirmed the original decree of the surrogate.

Walter N. Gill, for appellant.

I. H. Maynard, for respondent.

MARTIN, J. (after stating the facts).

It is conceded by the appellant that the transfer or inheritance tax on the estate of Katharine J. S. Davis must be governed by chapter 483 of the Laws of 1885, which was in force at her death, on January 16, 1887, and that its provisions must control as to the subject and the rate of taxation. The method of procedure for the enforcement of the transfer or inheritance tax law was somewhat changed by chapter 713 of the Laws of 1887 and chapter 399 of the Laws of 1892. The...