State Tax Comm'n v. Barstow (In re Estate of Barstow)

• Citation: 256 N.Y. 647,177 N.E. 177
• Parties: In the Matter of the Transfer Tax upon the ESTATE of Flora M. BARSTOW, Deceased. State Tax Commission, Appellant; Frances B. Barstow et al., as Executrices and Trustees, Respondents.
• Decision Date: 22 May 1931
• Court: New York Court of Appeals

256 N.Y. 647

177 N.E. 177

In the Matter of the Transfer Tax upon the ESTATE of Flora M. BARSTOW, Deceased. State Tax Commission, Appellant; Frances B. Barstow et al., as Executrices and Trustees, Respondents.

Court of Appeals of New York.

May 22, 1931.

Appeal from an order of the Appellate Division of the Supreme Court in the Second Judicial Department (230 App. Div. 371, 244 N. Y. S. 588), entered November 10, 1930, which modified and affirmed as modified an order of the Queens County Surrogate's Court assessing a transfer tax upon the estate of Flora M. Barstow, deceased. Testatrix during her lifetime executed a trust agreement whereby she reserved to herself, during her life, the income arising therefrom, and directed, upon her death, that one-half of the income be paid to each of her two daughters. Upon the death of either daughter the income of the entire fund to go to the survivor for life and upon the death of both the principal to be paid to remaindermen. The question on this appeal was whether the transfers provided for in the trust instrument should be taxed under the law in effect at the date of the death of the donor or at the date of the execution of the instrument. The Appellate Division held that the transfer tax was properly assessed under the law in effect at the date the trust agreement was executed.

Seth T. Cole, of Albany, and Harry M. Peyser, of New York City, for appellant.

Russell L. Bradford and Walter E. Cooper, both of New York City, for respondents.

PER CURIAM.

Order affirmed, with costs.

CARDOZO, C. J., and POUND, CRANE, LEHMAN, KELLOGG, O'BRIEN, and HUBBS, JJ., concur.