Adelaide Tilt v. Otto Kelsey, No. 18

• Court: United States Supreme Court
• Writing for the Court: Moody
• Citation: 52 L.Ed. 95,207 U.S. 43,28 S.Ct. 1
• Parties: ADELAIDE V. TILT, Benjamin B. Tilt, Joseph W. Congdon, and John R. Curran, as Executors of the Last Will and Testament and Codicil of Albert Tilt, Deceased, Plffs. in Err., v. OTTO KELSEY, Comptroller of the State of New York
• Docket Number: No. 18
• Decision Date: 21 October 1907

207 U.S. 43 28 S.Ct. 1 52 L.Ed. 95 ADELAIDE V. TILT, Benjamin B. Tilt, Joseph W. Congdon, and John R. Curran, as Executors of the Last Will and Testament and Codicil of Albert Tilt, Deceased, Plffs. in Err.,

v.

OTTO KELSEY, Comptroller of the State of New York.

No. 18. Argued and submitted January 28, 1907. Decided October 21, 1907.

This is a writ or error from this court to the surrogates' court of the county and state of New York, to review a judgment entered in that court in pursuance of an order of the court of appeals of that state. The judgment assessed a succession tax upon the personal estate of Albert Tilt, deceased, upon the ground that he was, at the time of his death, a resident of the state of New York. Before the assessment of the tax the estate of Tilt, who died testate, was fully administered in

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the courts of New Jersey, where the will was probated. In the course of the administration all the personal property, after paying debts, taxes, and charges of administration, was distributed by the executors to the beneficiaries under the will. A reversal of the judgment of the surrogates' court is sought for the reason that it did not give full faith and credit to the judicial proceedings of the state of New Jersey, as required by the Constitution and laws of the United States.

Mr. William G. Wilson for plaintiffs in error.

[Argument of Counsel from page 44 intentionally omitted]

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Mr. George M. Judd for defendant in error.

[Argument of Counsel from page 45 intentionally omitted]

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Mr. Justice Moody delivered the opinion of the court:

In the disposition of this case we are somewhat embarrassed by our ignorance of the reasons which controlled the decision of the highest court of the state. The opinion of the surro-

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gate was very brief. His judgment was affirmed upon appeal successively by the supreme court and the court of appeals,—in each court without an opinion and with two judges dissenting. The record shows the following facts: Albert Tilt was engaged in business as a silk manufacturer in Paterson, New Jersey, until the time of his death. Until 1888 he was a resident and citizen of Paterson. In that year he removed to New York city, became a resident and citizen of New York, and remained such until some time in the year 1899. He died in New York on May 2, 1900. His residence and citizenship at the time of his death was in dispute. For many years he had owned a house in New York City, where he lived during the greater part of the year, and another house in Roxbury, New Jersey, where he lived during the summer and early autumn. It is contended by the executors of his will, the plaintiffs in error, that in the last year of his life he changed his domicil from New York City to Roxbury, and that at the time of his death he was domiciled in New Jersey. On the other hand it is contended by the comptroller of New York, the defendant in error, that his domicil continued until his death to be in New York. Upon this question the evidence was conflicting.

After the death of Mr. Tilt, his will was admitted to probate by the surrogate of Morris county, New Jersey, who by law had jurisdiction to do this if the testator resided in the county at the time of his death. The petition for probate described the testator as 'late of the township of Roxbury, in said county,' and the letters testamentary granted on May 23, 1900, by the surrogate, described him as 'late of the county of Morris, deceased.' An order was made fixing a time within which creditors must prove claims against the estate. On the expiration of this time a further order was made, that all creditors who had neglected to bring in their claims and demands should 'be forever barred from their action therefor against the executors of said deceased.' Succession taxes, imposed by the law of New Jersey and the law of the United

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States, and all debts, were paid. The executors presented their accounts to the orphans' court of the county, and that court, acting within its jurisdiction, on June 20, 1901, allowed the accounts and directed the distribution of the estate, according to the terms of the will. The executors made the distribution in conformity with the court's order, thereby parting with all the property of the testator which had been in their hands. After the distribution had been accomplished, the state of New York for the first time made known its claim for a transfer tax. The comptroller of the state filed his petition with the surrogate of the county of New York. In response to this petition, on August 16, 1901, Robert Mazet was appointed by the surrogate as appraiser, to fix the fair market value of the property of Albert Tilt, deceased. This was done with the view of ascertaining the amount of a transfer tax due under a section of a statute providing for such a tax 'when the transfer is by will or by the intestate laws of this state from any person dying seised and possessed of the property while a resident of the state.' On March 6, 1903, Mazet filed his report in the surrogate's court. The material part of this report was: First, that the net personal property of the deceased 'subject to tax herein' was, at the time of his death, of the fair market value of $1,056,951.22; second, that Tilt was a resident of New York City at the time of his death; third, that he left a will which had been 'duly admitted to probate in the surrogate's court of the county of Morris, state of New Jersey;' fourth, after stating the disposition of his property made by the testatory by this will, the report appraised the estate 'subject to tax herein' at its fair market value at the amount already stated. On June 15, 1903, the surrogate entered an order adopting the value of the property reported by the appraiser and assessing the amount of the transfer tax specifically on each bequest contained in the will. The total tax amounted to about $13,000. On August 10, 1903, a paper, entitled 'Appeal to the Surrogate,' was filed by the executors. This paper gave notice of an

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appeal to the surrogate from the appraisement, assessment, and determination of the transfer tax, and from the surrogate's own order of June 15. The only ground of appeal which need be stated here is the fifth, which alleged 'that the right to assess or impose a tax under the laws of the state of New York upon the transfer of the property of the testator, if there ever was any such right, was barred before the commencement of this proceeding, by a decree of the orphans' court of Morris county, New Jersey, a court of competent jurisdiction, made on the 25th day of February, 1901, barring all claims against the said testator or his estate which had not been presented and proved to said executors, pursuant to public notice heretofore given and published, as prescribed by the laws of the state of New Jersey; and by the further decree of the same court, made on the 20th day of June, 1901, directing the distribution of the estate of said testator in the hands of said executors, according to the terms of the will of the said Albert Tilt, deceased; in obedience to which the said executors, without any notice or knowledge of any claim or liability for the payment of a transfer tax under the laws of the state of New York, distributed the said estate, so that there was not, at the time of the commencement of this proceeding, and is not now, any property of the said estate in the hands of said executors.' It was then agreed by counsel that the surrogate should determine on affidavits whether or not Albert Tilt was a resident of New York at the time of his death. Pending the consideration of this question the executor requested in writing certain findings of facts and conclusions of law, of which only two need be stated here. They are as follows: (2) 'Under the Constitution of the United States full faith and credit must be given to the probate of said will and codicil of said Albert Tilt in the state of New Jersey, and to the accounting and distribution made by his executors under the decree of the orphans' court of Morris county, in said state, of the estate of said Albert Tilt as a resident of New Jersey at the time of his death.' (3) 'None of the personal

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estate of said Albert Tilt is subject to the payment of a transfer tax under the laws of the state of New York, excepting only such of his personal estate as was actually within the state of New York at the time of his death.' These requests were refused by the surrogate, who, in a short opinion, found as a fact that Tilt was a resident of New York at the time of his death, and ruled that his personal estate, wherever situated, was subject to the payment of a transfer tax under the laws of New York. An order was accordingly entered affirming the order of June 15. Thereupon the executors filed exceptions, the last two of which were as follows: (20) 'To the refusal of the said surrogate to find, as a conclusion of law, that, under the Constitution of the United States, full faith and credit must be given to the probate of said will and codicil of said Albert Tilt in the state of New Jersey, and to the accounting and distribution made by his executors under the decree of the orphans' court of Morris county in said state, of the estate of said Albert Tilt as a resident of New Jersey at the time of his death. (21) To the refusal of the said surrogate to find, as a conclusion of law, that none of the personal estate of said Albert Tilt is subject to the payment of a transfer tax under the laws of the state of New York, excepting only such of his personal estate as was actually within the state of New York at the time of his death.' An appeal was then taken, and, as already stated, the action of the surrogate was affirmed by the supreme court and the court of appeals. The proceedings before the surrogate are somewhat fully set forth, because it is contended that no...