People v. Porter

• Decision Date: 15 April 1919
• Docket Number: No. 12560.,12560.
• Citation: 123 N.E. 59,287 Ill. 401
• Parties: PEOPLE v. PORTER.
• Court: Illinois Supreme Court

287 Ill. 401

123 N.E. 59

PEOPLE

v.PORTER.

No. 12560.

Supreme Court of Illinois.

April 15, 1919.

Appeal from County Court of Warren County; L. E. Murphy, Judge, presiding.

From an order of county court fixing inheritance tax upon the estate of J. Thatcher Porter, deceased, the People of the State of Illinois appeal. Reversed and remanded, with directions.

Edward J. Brundage, Atty. Gen., Floyd E. Britton, of Springfield, and George C. Hillyer, of Bushnell, for the People.

J. N. Thomas, of Monmouth (E. P. Field, of Monmouth, of counsel), for appellees.

STONE, J.

This is an appeal by the people from the order of the county court of Warren county fixing the inheritance tax on the estate of J. Thatcher Porter, deceased. The principal question involved in whether the conveyance in the lifetime of the deceased of 200 acres of real estate of Alvin Porter, his son, is subject to an inheritance tax under the laws of the state.

J. Thatcher Porter died intestate on September 13, 1917. At the time of his death he was seised and possessed of real estate and personalty, over and above indebtedness, amounting to about $97,000, on which the county court assessed an inheritance tax as provided by law. The court held the 200 acres deeded to Alvin Porter were transferred as compensation for services rendered by him to the deceased, and that the conveyance was based upon a full and valuable consideration, and that the property, and the conveyance thereof, are not subject to the assessment of an inheritance tax. The transfer of the 200 acres to Alvin Porter is dated April 6, 1916.

Appellant contends, first, that the conveyance was made in contemplation of death, and that this was the impelling motive causing the grantor to make the conveyance in spite of the fact that it may have been made to compensate the grantee for services rendered, and that while the sense of obligation contributed to the gift such was not the impelling motive; second, that the conveyance was intended to, and did, take effect after the death, and that such consideration as was present was but a moral obligation, and not a legal one, and did not take the transfer out of the terms, spirit, or meaning of the statute.

It appears from the evidence that the grantor at the time of this conveyance was about 75 years of age, feeble, afficited with disease, and subject to sinking spells, presumed to be the result of heart trouble. The testimony tends to show that for two years previous to his death his health was such that death might be expected to occur at any time; that at the time of the conveyance in question, and for some time previous thereto, he was under the care and treatment of a physician; that his health gradually failed until his death, on September 13, 1917. The evidence further tends to show that Alvin Porter, who was 47 years of age, had remained at home with his parents and managed the farm of some 480 acres, including the land in question, for his father up to the time of his father's death. There was no change in possession of the 200 acres in question until after the death of the grantor. The grantee stated that in his opinion this conveyance was made in contemplation of death, and not to take effect in possession until after the death of the grantor, but that the conveyance was made for the purpose of compensating him for services rendered to the grantor in his lifetime. Alvin received none of the proceeds from this land until after the death of his father, although the management of the land was under his control and direction, with the other lands then owned by his father. The father received the profits and paid the taxes and operating expenses from the proceeds. The testimony further tends to show that it was the understanding between Alvin and his father that the business should be conducted just the same as it had been prior to the conveyance, until the death of the grantor. The evidence fails to show any specific agreement or understanding between Alvin and his father concerning any compensation to be paid to Alvin for his services, he testifying that at the time he performed the services he believed his father would do the right thing under the circumstances. The evidence shows the value of the land to be $36,000. There is evidence showing, or tending to show at least, that the fair value of services rendered by Alvin to his father since his majority to the date of the conveyance approximates the fair cash market value of the land in question at the time of the conveyance.

That portion of section 1 of the statute concerning tax on gifts, legacies, inheritances, transfers, etc., is as follows:

‘A tax shall be and is hereby imposed upon the transfer of any property, real, personal or mixed, or of any interest therein or income therefrom, in trust or otherwise. * * * 3. When the transfer is of property made by a resident * * * by deed, grant, bargain, sale or gift, made in contemplation of the death of the grantor, vendor or donor, or intended to take effect in possession or enjoyment at or after such death.’ Hurd's Stat. 1917, p. 2500.

The general rule with relation to the assessment of an inheritance tax is that where the conveyance is intended to...