Asenap v. United States, Civ. No. 65-384.

• Decision Date: 11 January 1968
• Docket Number: Civ. No. 65-384.
• Citation: 283 F. Supp. 566
• Parties: Jane ASENAP et al., Plaintiffs, v. The UNITED STATES of America, Defendant.
• Court: U.S. District Court — Western District of Oklahoma

283 F. Supp. 566

Jane ASENAP et al., Plaintiffs, v. The UNITED STATES of America, Defendant.

Civ. No. 65-384.

United States District Court W. D. Oklahoma.

January 11, 1968.

Houston Bus Hill, and Phil E. Daugherty and Charles P. Ames, of Ames, Daugherty, Bynum, Black, Ashabranner & Rogers, Oklahoma City, Okl., for plaintiffs.

John O. Jones, Justice Dept., Ft. Worth, Tex., for defendant.

FINDINGS OF FACT

BOHANON, District Judge.

This is an action by the named plaintiffs against the United States of America for an income tax refund.

The question presented for determination is: Whether the allotted lands acquired by a restricted, noncompetent Comanche Indian by way of inheritance, and the income derived from those lands, are subject to federal estate taxation under the provisions of Section 2001, Internal Revenue Code of 1954.

The parties have filed a second stipulation of facts in this case which the Court adopts as its findings of fact and is in the words and figures as follows, to-wit:

It is hereby stipulated by and between the parties to this action, through their respective counsel, Houston Bus Hill and Ames, Daugherty, Bynum, Black, Ashabranner & Rogers, attorneys for the plaintiff herein, and John O. Jones, Tax Division, Department of Justice, Fort Worth, Texas, attorney for the defendant, that the following facts are true and correct and no further proof thereof need be offered in this action. It is further stipulated and agreed that nothing contained herein shall preclude either of the parties from hereafter objecting to the competency, relevancy or materiality of any matter contained herein.

I

This action is brought by the plaintiffs against the defendant, United States of America, for the recovery of federal estate taxes in the sum of $97,498.84, plus interest thereon as provided by law.

II

The federal estate taxes, plus interest thereon, for which recovery is here sought were assessed against and collected from the Estate of Wook-kah-nah, deceased, Comanche Allottee No. 1927, and the plaintiffs herein are the legal heirs of Wook-kah-nah, deceased. The plaintiffs are citizens and residents of the United States of America. The venue of this action, pursuant to Section 1402 of Title 28, United States Code, is the United States District Court for the Western District of Oklahoma, and jurisdiction of this action is conferred upon this Court by virtue of the provisions of Section 1346(a) (1) of Title 28, United States Code.

III

Wook-kah-nah, deceased, Comanche Allottee No. 1927 (hereinafter referred to as "decedent"), was a noncompetent, restricted, fullblood Comanche Indian and a Ward of the United States of America, under the jurisdiction of the Area Director of the Bureau of Indian Affairs at Anadarko, Oklahoma (hereinafter referred to as the "Area Director"). The United States of America, acting by and through the Secretary of the Interior (hereinafter referred to as the "Secretary") and the Area Director, has been holding in trust and exercising control over all of the restricted trust lands and oil and gas royalty and lease bonus income and rentals therefrom of decedent until her death, and is continuing to hold the same in trust for her heirs, legatees, and devisees, under the General Allotment Act of February 8, 1887, as amended.

IV

Decedent died testate on February 23, 1956, while a resident of Walters, Cotton County, Oklahoma. At the date of her death, decedent owned and was possessed of certain real properties which were being held in trust for her benefit by the United States, acting through the Secretary, and under the direct supervision and control of the Area Director. She also owned certain monies which were on deposit with and being held by the Area Director in trust for her benefit. These trust funds represented income from oil and gas royalties, oil and gas lease bonuses and oil and gas delay rentals derived from decedent's restricted lands. All of the real property and monies which were being held by the United States in trust for decedent's benefit were "restricted trust lands" and "restricted trust funds," respectively, in that decedent held only beneficial title thereto, while legal title thereto was held by the United States. The United States continues to hold these restricted trust lands and restricted trust funds in trust for the benefit of decedent's heirs, legatees and devisees under the provisions of the General Allotment Act of February 8, 1887, as amended.

In addition to these restricted trust lands and restricted trust funds, at the date of her death, decedent also owned and possessed other real and personal property which was not restricted property and to which she held legal as well as equitable title.

V

The restricted trust land of which decedent was possessed at the date of her death, and the origin of decedent's interest in each of these real properties is as follows:

(a) All of the SW/4 of Section 1-4S-11W, I.M., Cotton County, Oklahoma. This property is the original Comanche Indian Allotment No. 1927, and is the land which was originally allotted to decedent, individually, under the provisions of the Act of February 8, 1887, c. 119, 24 Stat. 388, as amended (25 U.S.C., 1964 ed., Sec. 331 et seq.) (hereinafter referred to as the "General Allotment Act of 1887, as amended").

(b) An undivided one-third interest in Lots 3 and 4 (NW/4) and the S/2 NW/4 of Section 1-4S-11W, I.M. Cotton County, Oklahoma. This property is decedent's inherited interest in the land that was originally allotted to her prior deceased husband, Homovich, Comanche Indian Allottee No. 1926, under the provisions of the General Allotment Act of 1887, as amended, supra. Decedent's interest in this property was acquired by inheritance upon the death of her husband.

(c) An undivided 14,895,468ths interest in the NE/4 of Section 12-4S-11W, I.M. Cotton County, Oklahoma. Decedent's prior deceased father, Titchy-wy, Comanche Indian Allottee No. 1983, was allotted the whole of the property described as the NE/4 of Section 12-4S-11W, I.M., Cotton County, Oklahoma, under the General Allotment Act of 1887, as amended, supra. Part of the 14,895/42,468ths interest in this property (an undivided 2,592/42,468ths interest) which decedent held at the date of her death was inherited by her from her prior deceased father, Titchy-wy Comanche Allottee No. 1983, and the remainder of the 14,895/42,468ths interest held by decedent at the date of her death (an undivided 12,303/42,468ths interest) was purchased by her from some of the remaining heirs of her prior deceased father, Titchy-wy, Comanche Allottee No. 1983, the said purchases being made for decedent by the Secretary, acting by and through the Area Director, with funds belonging to decedent and which were being held in trust for her by the Area Director, the said purchase being effected and title taken by the United States in trust for the decedent under the authority granted in the Act of June 26, 1936, c. 831, 49 Stat. 1967, as amended (25 U.S.C., 1964 ed., Sec. 502) (Hereinafter referred to as the "Oklahoma Indian Welfare Act of June 26, 1936")

(d) All of the NW/4 of Section 35-3S-11W, I.M., Cotton County, Oklahoma. This property is the original Comanche Indian Allotment No. 1979, and is the land that was originally allotted to decedent's prior deceased sister, Nahsotum (Sally Permamsu), Comanche Indian Allottee No. 1979, under the provisions of the General Allotment Act of 1887, as amended, supra. Decedent acquired a one-thirteenth (1/13th) interest in this property by inheritance upon the death of her sister. The remainder of decedent's interest in this property was purchased for her, while she was living, by the Secretary from the remaining heirs of her prior deceased sister, Nahsotum, with funds which the Secretary held in trust for decedent, under the provisions of the Oklahoma Indian Welfare Act of June 26, 1936, supra.

(e) The N/2 of the NW/4 of Section 36-2S-13W, I.M., Cotton County, Oklahoma. The whole of the NW/4 of Section 36, 2S-13W, I.M., was the original Comanche Indian Allotment No. 2924, and was the land that was originally allotted to John Oda, deceased Comanche Indian Allottee No. 2924, under the General Allotment Act of 1887, as amended, supra. Decedent's one-half interest in this original allotment was purchased for her, while she was living, by the Secretary from the heirs of John Oda, with funds which the Secretary held in trust for decedent, under the provisions of the Oklahoma Indian Welfare Act of June 26, 1936, supra.

All of the original allotments of the above-described lands were made in trust, title thereto being held by the United States, acting through the Secretary, in trust for the benefit of the various original allottees for a period of twenty-five years. Trust patents for each of the above-described properties were issued, and the trust period for each of the properties has been extended beyond the original twenty-five year period, under the provisions of the General Allotment Act of 1887, as amended, supra. No final patents in fee to any of the above-described properties have yet been issued and the United States, acting through the Secretary, continues to hold decedent's interest in these properties in trust for the benefit of her legal heirs, legates and devisees.

VI

At the date of her death, decedent also owned restricted trust funds in the sum of $63,300.08. These funds were held on deposit in the name of decedent in the Anadarko Area Office of the Bureau of Indian Affairs, Anadarko, Oklahoma. These restricted trust funds were derived from oil and gas royalties paid in connection with the sale of oil and gas produced from the restricted trust lands described in paragraph V above, and these funds were held by the Area Director in trust for decedent's benefit.

VII

At the date of decedent's death, she had on file with and pending before the Oklahoma State Tax Commission, Oklahoma City, Oklahoma,...