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Laws of Maine
Relating to
INHERITANCE TAXES
ºś,
Unlon
WATERVILLE
SENTINEI, PUBLISHING COMPANY
IQI3

Inheritance Tax Laws
OF MAINE
Chap. 8 R. S. IQ03 as amended by Public Laws of Maine,
I905; Chap. I24; Public Laws of Maine, 1909, Chaps. 186 and
I87; Public Laws of Maine 1911, Chap. I63; Public Laws of
Maine, 1913, Chaps. I28 and IQO.
‘SECTION 69. All property within the jurisdiction of this
state, and any interest therein, whether belonging to inhabitants
of this state or not, and whether tangible or intangible, which
shall pass by will, by the intestate laws of this state, by allow-
ance of a judge of probate to a widow or child by deed, grant,
sale or gift, except in cases of a bona fide purchase for full
consideration in money or money's worth, and except as herein
otherwise provided made or intended to take effect in posses-
sion or enjoyment after the death of the grantor, to any person
in trust or otherwise, except to or for the use of any educa-
tional, charitable, religious or benevolent institution in this
state, the property of which is by law exempt from taxation,
shall be subject to an inheritance tax for the use of the state as
hereinafter provided. Property which shall so pass to or for
the use of (Class A) the husband, wife, lineal ancestor, lineal
descendant, adopted child, the adoptive parent, the wife or
widow of a son, or the husband of a daughter of a decedent,
shall be subject to a tax upon the value of each bequest, devise
or distributive share, in excess of the exemption hereinafter
provided, of one per cent if such value does not exceed fifty
thousand dollars, one and one-half per cent if such value ex-
ceeds fifty thousand dollars and does not exceed one hundred
thousand dollars, and two per cent if such value exceeds one
hundred thousand dollars; the value exempt from taxation to
or for the use of a husband, wife, father, mother, child, adopted
child or adoptive parent shall in each case be ten thousand dol-
lars, and the value exempt from taxation to or for the use of
2
4.
any other member of (Class A) shall in each case be five hun-
dred dollars. Property which shall so pass to or for the use of
(Class B) a brother, sister, uncle, aunt, nephew, niece or cousin
of decedent, shall be subject to a tax upon the value of each
bequest, devise or distributive share in excess of five hundred
dollars, and the tax of this class shall be four per cent of its
value for the use of the state if such value does not exceed fifty
thousand dollars, four and one-half per cent if its value exceeds
fifty thousand dollars and does not exceed one hundred thou-
sand dollars and five per cent if its value exceeds one hundred
thousand dollars. Property which shall pass to or for the use
of any others than members of Class A, Class B and the insti-
tutions excepted in the first sentence of this section, shall be
subject to a tax upon the value of each bequest, devise or dis-
tributive share in excess of five hundred dollars, and the tax of
this class shall be five per cent of its value for the use of the
state if such value does not exceed fifty thousand dollars, six
per cent if its value exceeds fifty thousand and does not exceed
one hundred thousand dollars, and seven per cent if its value
exceeds one hundred thousand dollars. Administrators, execu-
tors and trustees, and any grantees under such conveyances
made during the grantor's life shall be liable for such taxes,
with interest, until the same have been paid. All personal
property or any interest therein belonging to any decedent resi-
dent of another state, provided said state assesses no inherit-
ance tax upon the personal property of decedents resident in
this state, shall be exempt from the payment of any inheritance
tax under this section.’
“SECTION 70. Whenever property shall descend by devise,
descent, bequest or grant to a person for life or for a term of
years and the remainder to another, except to or for the use of
any educational, charitable, religious or benevolent institution
in this state, the value of the prior estate shall be determined by
the Actuaries' Combined Experience Tables at four per cent
compound interest and a tax imposed at the rate prescribed in
the preceding section for the class to which the devisee, legatee
or grantee of such estate belongs and a tax shall be imposed
at the same time upon the remaining value of such property at
the rate prescribed in said section for the class to which the
devisee, legatee or grantee of such remainder belongs, subject
to the exemptions provided in the preceding section.’
5
In every case in which it is impossible to compute the present
value of any interest, by reason of such interest being condi-
tioned upon the happening of a contingency or dependent upon
the exercise of a discretion or subject to a power of appoint-
ment or otherwise, the attorney general may effect such settle-
ment of the tax as he shall deem for the best interests of the
state and payment of the sum so agreed upon shall be a full
Satisfaction of such tax. -
“SECTION 71. Whenever a decedent appoints one or more
executors or trustees, and in lieu of their allowance makes a
bequest or devise of property to them which would otherwise be
liable to Said tax, or appoints them his residuary legatees, and
Said bequests, devises, or residuary legacies exceed a reasonable
compensation for their services, such excess shall be liable to
Such tax, and the court of probate having jurisdiction of their
accounts shall determine the amount of such reasonable com-
pensation.’
‘SECTION 72. All taxes imposed by section sixty-nine upon
the estates of deceased residents of this state shall be payable
to the treasurer of state and all taxes imposed by said section
sixty-nine upon the estates of non-resident decedents to the
attorney general by the executors, administrators or trustees at
the expiration of two years after the granting of letters testa-
mentary or of administration; but if legacies or distributive
shares are paid within two years, the tax thereon shall be pay-
able at the same time; and if the same are not so paid, interest
at the rate of six per cent a year shall be charged and collected
from the time the same became payable; but no such tax upon
estates of residents or inhabitants of this state shall be accepted
except upon presentation of a certificate from a probate court
showing the amount of such tax due. It shall be the duty of
the personal representative of said deceased to petition the pro-
bate court having jurisdiction to assess such taxes before the
payment of any such legacies or distributive shares, and before
the expiration of two years after the granting of letters afore-
said. The register of probate shall send by registered mail, a
copy of such petition to the attorney general at least seven days
before the hearing thereon unless the attorney general in writ-
ing waives the same.
6
“If no such petition is filed within the time limited, the attor-
ney general may file a similar petition, of which, unless notice
is waived, at least fourteen days’ notice shall be given such per-
Sonal representative or his agent. In either case the attorney
general may appear and be heard upon the assessment of such
tax and an appeal may be had from the decree of the judge of
probate by either party. Real estate of which the decedent died
Seized or possessed, subject to taxes as aforesaid shall be
charged with a lien for all such taxes and interest, which lien
may be discharged by the payment of all taxes due and to
become due upon said real estate or separate parcel thereof, or
by an order or decree of the probate court discharging said lien,
said order or decree to be granted by the probate court upon
the deposit with said court of a sum of money or a bond, suf-
ficient to secure to the State the payment of any tax due or to
become due on said real estate. Orders or decrees discharging
such lien may be recorded in the registry of deeds in the county
where said real estate is located.’
‘SECTION 73. After failure to pay such tax, as provided in
the preceding section, such an administrator, executor or trus-
tee is liable to the state on his administration bond for such tax
and interest, and an action shall lie thereon without the author-
ity of the judge of probate; or an action of debt may be main-
tained in the name of the state against any such administrator,
executor or trustee, or any such grantee, for such tax and
interest. But if such administrator, executor or trustee, after
being duly cited therefor, refuses or neglects to return his
inventory or to settle an account, by reason whereof the judge
of probate cannot determine the amount of such tax, such
administrator, executor or trustee shall be liable to the state on
his administration bond for all damages occasioned thereby.’
“SECTION 74. Any administrator, executor or trustee, having
in charge or trust any property subject to such tax, shall deduct
the tax therefrom, or shall collect the tax thereon, and interest
chargeable under section seventy-two from the legatee or per-
son entitled to said property, and he shall not deliver any spe-
cific legacy or property Subject to said tax to any person until
he has collected the tax thereon. *
“SECTION 75. Whenever any legacies subject to said tax
shall be charged upon or payable out of any real estate, the
7
heir or devisee, before paying the same, shall deduct said tax
therefrom and pay it to the executor, administrator or trustee,
and the same shall remain a charge upon said real estate until
it is paid ; and payment thereof shall be enforced by the execu-
tor, administrator or trustee, in the same manner as the pay-
ment of the legacy itself could be enforced.’
‘SECTION 76. If any such legacy be given in money to any
person for a limited period, such administrator, executor or
trustee shall retain the tax on the whole amount, but if it be
not in money, he shall make an application to the judge of pro-
bate having jurisdiction of his accounts to make an apportion-
ment, if the case requires it, of the sum to be paid into his
hands by such legatee on account of said tax and for such fur-
ther order as the case may require.’ -
‘SECTION 77. All administrators, executors and trustees shall
have power to sell so much of the estate of the deceased as will
enable them to pay said tax in the same manner as they may be
empowered to do for the payment of his debts.’
‘SECTION 78. No final settlement of the account of any exe-
cutor, administrator or trustee shall be accepted or allowed by
any judge of probate unless it shall show, on oath or affirmation
of the accountant, and the judge of said court shall find, that
all taxes, imposed by the provisions of section sixty-nine, upon
any property or interest therein belonging to the estate to be
settled by said account, shall have been paid, and the receipt
of the treasurer of state for such tax shall be the proper
voucher for such payment.’
“SECTION 79. A copy of the inventory of every estate, any
part of which may be subject to a tax under the provisions of
section sixty-nine, or if the same can be conveniently separated,
then a copy of such part of such inventory with the appraisal
thereof, shall be sent by mail by the register or the judge of the
court of probate in which such inventory is filed to the attor-
ney general within ten days after the same is filed. The fees
for such copy shall be paid by the executor, administrator or
trustee, and allowed in his account.”
‘SECTION 80. Whenever any of the real estate of a decedent
shall so pass to another person as to become subject to said tax,
the executor, administrator or trustee of the decedent shall
inform the board of state assessors thereof within six months
3
8
after he has assumed the duties of his trust, or if the fact is not
known to him within that time, then within one month after it
does become so known to him.’
“SECTION 81. Whenever for any reason the devisee, legatee
or heir who has paid any such tax shall refund any portion of
the property on which it was paid, or it shall be judicially deter-
mined that the whole or any part of such tax ought not to have
been paid, Said tax, or the due proportional part of said tax,
shall be paid back to him by the executor, administrator or
trustee.’ • ‘
‘SECTION 82. The value of such property as may be subject
to said tax shall be its actual market value as found by the judge
of probate, after public notice or personal notice to the board of
State assessors and all persons interested in the succession to said
property, or the board of state assessors or any of said persons
interested may apply to the judge of probate having jurisdic-
tion of the estate and on such application the judge shall ap-
point three disinterested persons, who, being first sworn, shall
view and appraise Such property at its actual market value for
the purposes of said tax, and shall make return thereof to said
probate court, which return may be accepted by said court in
the same manner as the original inventory of such estate is
accepted, and if SO accepted it shall be binding upon the person
by whom such tax is to be paid, and upon the state. And the
fees of the appraisers shall be fixed by the judge of probate
and paid by the executor, administrator or trustee.’
‘SECTION 83. The court of probate, having either principal
or ancillary jurisdiction of the settlement of the estate of the
decedent, shall have jurisdiction to hear and determine all
questions in relation to said tax that may arise affecting any
devise, legacy or inheritance under this chapter, subject to
appeal as in other cases, and the attorney general shall repre-
sent the interests of the state in any such proceedings. The
judge of probate, having jurisdiction as aforesaid, shall fix the
time and place for hearing and determining such questions and
shall give public notice thereof and personal notice to the exe-
cutor, administrator or trustee. Appeals in behalf of the estate
shall be taken in the name of the executor, administrator or
trustee and service upon the attorney general shall be sufficient.
Q
When appeals are taken by the state, service shall be made upon
the executor, administrator or trustee.’
‘SECTION 84. The fees of judges or registers of probate for
the duties required of them by the fifteen preceding sections
shall be, for each order, appointment, decree, judgment, or
approval of appraisal or report required hereunder, fifty cents,
and for copies of records, the fees that are now allowed by law
for the same. And the administrators, executors, trustees or
other persons paying said tax shall be entitled to deduct the
amount of all such fees paid to the judge or register of probate
from the amount of said tax to be paid to the treasurer of
state.’ t -
‘SECTION 85. In the foregoing sections relating to inherit-
ances the word “person” shall be construed to include bodies
corporate as well as natural persons; the word “property” shall
be construed to include ..both real and personal estate, and any
form of interest therein whatsoever, including annuities.’
“SECTION 86 The registers of probate in the several counties
shall deliver to the attorney general, on or before the first day
of June in each year, a list of all estates in which it appears
from the record that some part of said estate may be liable to
an inheritance tax, and in which a will has been offered for .
probate or administration granted for more than one year prior
to the time of filing such list, and in which no inheritance tax
has been assessed or paid.
Said list shall contain the name of the deceased, the date of
the administration granted, and the name and residence of the
administrator or executor.
The attorney general shall promptly investigate all cases SO
reported, by notifying the executor, administrator, trustee, heir
or devisee, and in such other manner as he may determine, and
if it appears to him that in any such case an inheritance tax
is due the state and has not been paid to the state, he shall,
unless said tax is paid to the state, within thirty days after
notice from him to the executor, administrator, trustee, heir or
devisee that the same is due, cite the executor, administrator,
trustee, heir or devisee, whose duty it is to pay said tax, before
the proper probate court in such manner as is provided for the
citation of trust officers in probate proceedings and shall take
all other action necessary to secure the payment of said tax.
IO
In such proceedings the attorney general shall recover costs
to be fixed and determined by the judge of probate in his dis-
cretion, which costs may be retained by said attorney general
for his own use and shall be additional to any salary allowed to
him by law.’
‘SECTION 87. If, upon the decease of a person leaving an .
estate liable to pay an inheritance tax, a will disposing of such
estate is not offered for probate, or an application for adminis-
tration made within six months after such decease, the proper
probate court upon application by the attorney general, shall
appoint an administrator for such estate, and it shall be the
duty of the attorney general, when such case is brought to his
attention to petition for administration on such estate and the
judge in his discretion may appoint such attorney general. or
other suitable person as such administrator, and said attorney
general shall be entitled to costs as in other probate proceed-
ings.’
“SECTION 88. . If any executor, administrator or trustee neg-
lects or refuses to file an inventory of the estate under his
charge within three months from the date of the warrant of
appraisal, unless such time be extended by the judge of probate,
he shall be cited to file such inventory by the judge of probate
and if he neglects or refuses to file such inventory within sixty
days thereafter he shall be liable to a penalty of not more than
five hundred dollars which shall be recovered in an action of
debt by the attorney general for the use of the state and the
register of probate shall notify the attorney general of the fail-
ure of any executor, administrator or trustee to file an inventory
as above provided.’
“SECTION 89. Property belonging to a deceased resident of
this state which shall be distributed by order of the proabte
court subsequent to the passage of this act, and which is not
therein at the time of his death shall not be taxable under the
provisions of this chapter if legally subject in another state or
country to a tax of like character and amount to that imposed
by section sixty-nine, and if such tax be actually paid or guar-
anteed or secured in accordance with the law of such other
state or country; if legally subject in another state or country
to a tax of like character, but of less amount than that imposed
by section sixty-nine and such tax be actually paid, guaranteed
II
or Secured as aforesaid, such property shall be taxable under
the provisions of section sixty-nine to the extent of the differ-
ence between the tax thus actually paid, guaranteed or secured,
and the amount for which such property would otherwise be
liable under this chapter. Property of non-resident decedent
which is within the jurisdiction of the state at the time of his
death if subject to a tax by the law of the state or country of
his residence, of like character with that imposed by this chap-
ter, shall be subject only to such portion of the tax imposed
hereunder if any as may be in excess of such tax imposed by
the laws of such state or country. And where said non-resident
decedent has more than one heir or his property is divided
among more than one legatee, each heir, or in case of a will,
each legatee shall be held to receive such proportion of the
property within the jurisdiction of the state of Maine as the
amount of all property received by him as such heir or legatee
bears to all the property of which said decedent died possessed.
The amount of property of the estate of a non-resident which
shall be exempt from the payment of an inheritance tax under
section sixty-nine of chapter eight of the Revised Statutes shall
be only such proportion of the whole exempted amount which
is provided therein for the estates of resident decedents, as the
amount of the estate of the non-resident actually or construct-
ually in this state bears to the total value of the non-resident
decedent's estate wherever situated.’ -
“SECTION 90. Clerks of cities and towns shall report to the
state treasurer the names of all persons dying within their
respective municipalities who in the judgment of said clerks
leave estates the value whereof exceeds five hundred dollars,
together with the names of husband, wife and next of kin so
far as known to him; such report shall be mailed to the State
treasurer within ten days of the time when the certificate of
death is filed with such clerk, and a fee of twenty-five cents
shall be paid said clerk by the state therefor. The state treas-
urer shall prepare and furnish blanks for such returns.
SECTION 91. When the personal estate passing from any
person, not an inhabitant or resident of this state, as provided
in section sixty-nine of chapter eight of the revised statutes,
shall consist in whole or in part of shares of any railroad, or
street railway company or telegraph or telephone company
I 2
incorporated under the laws of this state and also of some
Other State or country, so much only of each share as is pro-
portional to the part of such company’s lines lying within this
State shall be considered as property of such person within the
jurisdiction of this state for the purposes of this chapter.’
‘SECTION 92. When the personal estate passing from any
deceased person not an inhabitant or resident of this state, as
provided in Section sixty-nine, shall consist of the stocks, bonds
or other debt or certificate of indebtedness of any corporation
Organized under the laws of Maine, no collateral inheritance
tax shall be assessed upon the same unless said corporation
Shall at the time of such decease have tangible property within
the state exceeding one thousand dollars in value. The attor-
ney general, upon satisfactory evidence and payment of a fee
of five dollars to the use of the state shall file a certificate in
the office of the secretary of state that any such corporation
has not tangible property within the state exceeding one thou-
Sand dollars in value. Such certificate may at any time after
notice and upon satisfactory evidence, be revoked. A copy of
the certificate of revocation shall be sent to the clerk, and to
any Stock registrar or transfer agent whose name is on file with
said secretary. Until the receipt of such certificate of revoca-
tion, any such stock registrar or transfer agent may lawfully
transfer the stock of said corporation and perform all other
duties incident to his office.’ -
‘SECTION 93. Subject to the provisions of section ninety-
two if a foreign executor, administrator or trustee assigns or
transfers any stock in any national bank located in this state
or in any corporation organized under the laws of this state,
owned by a deceased non-resident at the date of his death and
liable to a tax under the provisions of this chapter, the tax
shall be paid to the attorney general at the time of such assign-
ment or transfer; and if it is not paid when due, such executor,
administrator or trustee shall be personally liable therefor until
it is paid. Subject to the provisions of section ninety-two a
bank located in this state or a corporation organized under the
laws of this state which shall record a transfer of any share
of its stock made by a foreigh executor, administrator or trus-
tee, or issue a new certificate for a share of its stock at the
instance of a foreign executor, administrator or trustee before
I3
all taxes imposed thereon by the provisions of this chapter
have been paid, shall be liable for such tax in an action of debt
brought by the attorney general.’
‘SECTION 94. Subject to the provisions of section ninety-
two no person or corporation shall deliver or transfer any secu-
rities or assets belonging to the estate of a non-resident dece-
dent to anyone unless authority to receive the same shall have
been given by a probate court of this state, and upon satisfac-
tory evidence that all inheritance taxes provided for by this
chapter have been paid, guaranteed or secured as hereinbefore
provided. Any person or corporation that delivers or transfers
any securities or assets in violation of the provisions of this
section shall be liable for such tax in an action of debt brought
by the attorney general.’ -
‘SECTION 95. The attorney general shall promptly com-
mence proceedings for the recovery of any of said taxes within
six months after the same became payable; and shall commence
the same when the judge of a probate court certifies to him
that the final account of an executor, administrator or trustee
has been filed in such court, and that the settlement of the
estate is delayed because of the non-payment of said tax. The
judge of the probate court shall so certify upon the application
of any heir, legatee or other person interested therein, and may
extend the time of payment of said tax whenever the circum-
stances of the case require.”
‘SECTION 96. This act shall not apply to estates of persons
deceased prior to the date of taking effect of the same, nor to
property passing by deed, grant, Sale or gift made prior to said
date, but said estates and property shall remain subject to the
provisions of law in force prior to the taking effect of this act.”
‘SECTION 97. All moneys received by the attorney general
as taxes collected under the provisions of this chapter shall be
by him forthwith paid to the state treasurer.’
I4.
REFERENCES TO SEVERAL ENACTMENTS OF INHERITANCE TAX
LAWS FROM IS93 To IQI3.
CHAPTER I46, PUBLIC LAWS OF I893.
This act did not apply to any cases then pending in the pro-
bate court and took effect when approved.
CHAPTER 96, PUBLIC LAWS OF I895.
Took effect when approved.
CHAPTER 225, PUBLIC LAWS OF I.90I.
Took effect when approved.
CHAPTER I56, PUBLIC LAWS OF I.903.
Took effect when approved.
CHAPTER I24, PUBLIC LAWS OF I905.
Took effect when approved.
CHAPTERS 186 AND I&7 PUBLIC LAWS OF I.909.
Took effect July 2, 1909.
CHAPTER I63, PUBLIC LAWS OF IQII.
This act did not apply to estates of persons deceased prior
to the date of taking effect of the same nor to property passing
by deed, grant, Sale or gift made prior to said date, but said
estate and property remained subject to the provisions of
law in force prior to the taking effect of this act,
This act took effect June 29, 1911.
CHAPTER I28, PUBLIC LAws of 1913.
The provisions of this act applied to all cases in which the
tax remained unpaid on the date of the enactment hereof.
Approved March 26, 1913.
I5,
Z *
CHAPTER I90, PUBLIC LAWS OF I913.
The provisions of this act excepting Section 3 applied to all
cases in which the tax remained unpaid at the date on which
this act took effect, but the provisions of Section 3 did not
apply to the estate of decedent dying before this act took effect.
This act took effect July 12, 1913. -
Tax may be assessed or the rule of assessment changed in
the case of undistributed estates, even though the statute was
passed subsequently to death of testator.
Carpenter vs. Com. Of Penn., 17 How, 462.
Lombard, Appellant, 88 Me., 587. -
I6 -
RULES FOR INTERPRETATION.
As the Maine statutes in relation to inheritance taxes have
not been before our courts for interpretation except in two
instances we are obliged to rely upon the principles laid down
by the courts of other states in the interpretation of their stat-
utes for Our guidance. Below a brief summary of a few of
the leading rules may be found.
A TAx ON RIGHT OF SUCCESSION.
An inheritance tax, so called, is properly termed an excise
tax and may be imposed not only upon the right of the owner
of property to transmit it after his death, but also upon the
privilege of his beneficiary to succeed to the property thus
dealt with. The better view seems to regard it as laid on the
right or privilege of receiving property rather than upon the
right of transmitting it, although in some cases it has been
held to be a tax on the right of transmission, or even on the
transmission itself. It is a question, however, which depends
largely upon the language of each particular statute.
State vs. Hamlin, 86 Maine, 495.
Minot vs. Winthrop, 162 Mass., 113.
Attorney General vs. Stone, 209 Mass., 186.
In re Rennedy, 157 Cal., 517.
Rnowlton vs. Moore, 178 U. S., 41.
ExEMPTIONS.
The exemptions provided under Section 69 of Chapter 8,
Revised Statutes, are to be deducted from each heir’s or lega-
tee’s share of the estate.
State vs. Hamlin, 86 Me., 507, 508.
Exemptions of educational, charitable, religious or benevolent
institutions apply to domestic corporations and do not apply
to educational, charitable, religious or benevolent institutions
organized under the laws of another state.
Rice vs. Bradford, 180 Mass., 545.
Batt et als, vs. Treasurer and Receiver General, 209 Mass., 319.
17
The amount of property of the estate of a non-resident
which shall be exempt for the payment of an inheritance tax
under Section Sixty-nine of Chapter Eight of the Revised Stat-
utes shall be only such proportion of the whole exempted
amount which is provided therein for the estates of residents
decedents, as the amount of the estate of the non-resident actu-
ally or constructually in this state bears to the total value of
the non-resident, decedent’s estate wherever situated.
JURISDICTION.
The liability of personal property to an inheritance tax does
not depend upon its location, but upon whether the beneficiary
came into its possession through the exercise of a privilege
conferred by the state. The succession to personal property of
the decedent wherever situated is taxable at the domicile of
the decedent, although the foreign assets may have been dis-
tributed in the foreign jurisdiction, and although the state of
the situs of the property may have already imposed a tax on its
transfer, but not where the decedent's debts in the foreign
jurisdiction exceeded his property there. Rulings as to the
situs of personal property under the general law are not con-
trolling on a construction of the inheritance law, as the inherit-
ance laws are not taxes in the strict sense of the term.
Appeal of Gallup, 76 Conn., 617, 57 A., 699.
Frothingham vs. Shaw, 175 Mass., 59, 61, 78.
In re Swift, 137 N. Y., 77, 88, 32 N. E., 1096.
Estate of Cornell, 170 N. Y., 423.
State vs. Bullen, 143 Wis., 512, 520.
In re Joyslin, 76 Vt., 88, 56 A., 281, appears to be out of
harmony with the New York and Massachusetts rule.
See In re Howard, S0 Vt., 48.
Personal property, however, of certain classes in some juris-
dictions is held to have a situs of its own and to be taxable in
the state where found at time of death of decedent, though
decedent may have been a non-resident. Regard should be
paid, however, to the language of the statutes under which the
decision is rendered.
In re Whiting, 150 N. Y., 27.
In re Weaver’s Estate, 110 Iowa, 328.
Blackstone vs. Miller, 188 U. S., 189.
Callahan vs. Woodbridge, 17I Mass., 595.
, I8
A tax is imposed on a non-resident owner of stock in a
domestic corporation or in national banks located in the state
although the certificate is actually outside of the state and
although actually transferred in a foreign jurisdiction before
the tax is collected.
Greves v. Shaw, 173 Mass., 205.
In re Bronson, 150 N. Y., 1.
The jurisdiction of the domicile of the testator cannot im-
pose a tax on his foreign real estate, although the devisor and
devisee are both residents of the state.
In re Swift, 137 N. Y., 77, 88, 64 Hun, 639.
Connell vs. Crosby, 210 Ill., 380.
Callahan vs. Woodbridge, 171 Mass., 595.
Where real estate is devised, subject to mortgage, the inter-
est or equity of the testator in the real estate only is to be
considered as devised.
In re Sutton, 38 N. Y., Suppl., 277.
McCurdy vs. McCurdy, 197 Mass., 248.
In determining whether a bequest, devise or distribute share
is in excess of the exemption, the authorities assessing the tax
have no right to take into account in the case of a non-resident
decedent in determining the amount received by the devisees
or distributees, the property situated in another state or coun-
try. A tax can only be levied upon the property within the
jurisdiction of the state levying it and such exemptions as are
provided must be deducted from the property within the juris-
diction of the state assessing the tax.
- Attorney General vs. Varney, 211 Mass., 134.
LEGACIES IN PAYMENT OF DEBTs.
Generally, advances are held to be subject to an inheritance
tax as they are not made for a valuable consideration.
In re Bartlett, 25 N. Y., Suppl. , 990.
In re Cornwell, 5 Pa. Co. Ct., 368.
Interests passing under a will made in pursuance of con-
tracts during the life time of the testator under which a valid
debt was created during his life time, have been held to be not
subject to an inheritance tax.
In re Baker, 83 N. Y., App. Div., 530.
IQ
And where a person claimed exemption by reason of the
transfer being made in payment for services, he must show
that the services equalled the full amount transferred.
State Street Trust Co. vs. Stevens, 209 Mass., 373.
It has been held, however, that where a provision was made
by will for the legatee, in view of care and services, that such
legacy was subject to a succession tax.
In re Doty, 27 N. Y. Suppl. , 653.
And in Massachusetts statutes in the Middlesex County
Probate Court, in re Perry, it was held that where property was
given by will for compensation for care and support that the
words in the Massachusetts statute “bona fide purchase for full
consideration of moneys or moneys worth made to take effect
after the death of the grantor” applied only to a deed and not
to a will and the legacy given for this purpose was taxable.
In general the authorities seem to hold that where a legacy
is given in discharge of a legal claim which might have been
brought against the estate, no inheritance tax is to be assessed,
but it is not quite clear what the view of our courts would be
under our statutes where the creditor sees fit to take his pay-
ment under a transfer of the property by will. If he desires
to escape the inheritance tax, he may be required to waive the
legacy and present his claim against the estate as in the case of
Doty, 27 N. Y. Suppl. 653.
RECIPROCAL PROVISIONS.
Property of resident decedent liable to be taxed in another
state shall only be subject to be taxed for the excess, if any, of
Maine tax over tax actually paid in or secured in other state.
Personal property of resident of foreign state which exempts
property of residents of Maine from inheritance tax, not tax-
able under laws of Maine.
Personal property of resident of foreign state which does
not exempt personal property of residents of Maine from
inheritance tax, is however subject only to be taxed for excess,
if any, of Maine tax over tax imposed by such other state.
WHEN DUE.
All inheritance taxes are due and payable whenever legacies
or distributive shares are paid and in all cases two years after
granting of letters testamentary or of administration. Interest
at rate of 6% is charged on all taxes not paid when due.

RATES OF TAxATION AND EXEMPTIONS.
Rate.
Rate.
Rate.
RELATIONSHIP.
Exemption.
Father, mother, son, daugh-
ter, husband, wife, adopt-
ed child or adoptive parent
Grandparents and other lin-
eal ancestors of remoter
degrees, grandchildren and
other lineal descendents
of remoter degrees, wife
or widow or son, or hus-
band or widower of daugh-
ter. . . . . . . . . . . . . . . . . . . . .
Brother, sister, uncle, aunt,
nephew, niece, or cousin
All other heirs or legatees
except educational, domes-
tic, charitable, benevolent.
or religious institutions. .
$10,000.00
500.00
500.00
500.00
If estate does not exceed $50,-
000.00
If estate does not exceed
$50,000.00. . . . . . . . . . . . . .
If estate does not exceed
$50,000.00
a s tº e º 'º - e - - - - - -
If estate does not exceed
$50,000.00
s e a e º e º e º 'º - * * * *
1%
1%
4%
5%
If estate exceeds $50,000 but
does not exceed $100,000
If estate exceeds $50,000 but
does not exceed $100,000
If estate exceeds $50,000 but
does not exceed8100,000. .
If estate exceeds $50,000 but
does not exceed $100,000. .
13%
6%
If estate exceeds $100,000.
If estate exceeds $100,000. .
If estate exceeds $100,000. .
If estate exceeds $100,000. .
2%
2%
5%
7%
The following tables based on the Actuaries or Combined Experience Tables and computed at 4% were prepared by Mr.
J. S. McCoy, Government Actuary, for use by the Internal Revenue Department in assessing inheritance taxes under the
War Revenue Act of 1898, and are reprinted with the consent of the Commissioner of Internal Revenue.
TABLE No. 1.
Showing the present worth of an annuity, or life interest, and of a reversionary interest.
Mean redemption
** Annuity or
resent value of one
ollar due at the end
Reversion, or
present value of one
dollar due at the
Mean redemption
Annuity or
present value of one
dollar due at the end
Reversion, or
present value of one
dollar due at the
AGE. period. of each year during end of the year of AGE period. of each year during | end of the year of
the life of a person death of a person the life of a person death of a person
of specified age. of specified age. of specified age. of specified age.
8 39.625 $19. 61097 $0.20727 30 29. 678 17.03961 0.306.17
9 39.264 19. 534.13 0.21022 31 29. 147 16. 87176 0.31262
10 38.891 19. 45359 (). 21332 32 28.608 16. 6.9846 0.31929
11 38. 507 19.36943 0.21656 33 28.067 16. 51964 0.32617
12 38. 113 19. 2S184 0.21993 34 27. 516 16. 33503 0.33327
13 37. 710 19. 19065 0.22344 35 26.961 16. 14437 0.34060
14 37.298 19.09590 0.22708 36 26, 401 15.94755 O. 34.817
15 36.877 18.99764 0.23086 37 25. 834 15. 74427 0.35599
16 36.447 18.89569 0.23478 38 25.263 15. 53421 0.364:07
17 36.010 18. 79010 0.23884 39 24, 6S5 15.31722 0.37241
18 35. 565 1S. 68070 0.24305 40 24. 101 15.09.295 0.3S104
19 35. 113 18. 56751 0.24740 41 23. 5.11 14.86102 0.38996
20 34.652 18.45038 0.25191 42 22.915 º 14. 62122 0.399.18
21 34. 186 18, 32932 0.25656 43 22.313 14.37356 0.40871
22 33. 711 18. 20416 0.2613S 44 21. 708 14.11S60 0.41852
23 33. 230 18.07471 0.26636 45 21. 103 13.85713 0.42S57
24 32.742 17.94097 , 0.271 50 46 20.499 13. 58958 0.43886
25 32. 248 17.80274 0.276S2 47 19.896 13.31698 0.44935
26 31. 747 17.65984 0.28231 48 19.298 13.03942 0.46002
27 31.239 17. 51224 0.2S799 49 18. 703 12.75716 0.47088
28 30. 725 17.35968 0.29386 50 18. 113 12. 47032 0.48.191
29 30.205 17.20225 0.2999.1 51 17. 527 12. 17919 (). 49311
§

TABLE No. I—Concluded.
Showing the present worth of an annuity, or life interest, and of a reversionary interest.
Mean redemption
Annuity or
present value of one
dollar due at the end
Reversion, or
present value of one
dollar due at the
A.G.E.
Mean redemption
Annuity or
present value of one
dollar due at the end
of each year during
Reversion, or
present value of one
dollar due at the
end of the year of
AGE period. of each year during | end of the year of period.
the life of a person death of a person the life of a person death of a person .
of specified age. of specified age. of specified age. lf specified age.
52 16.947 $11.88408 $0.50446 76 5. 749 4. 65.125 0.78264
53 16.372 11. 58531 0. 51595 77 5. 428 4.39383 ° 0.792.54
54 15. S04 11.28325 0. 52757 78 5. 119 4. 14286 0.80220
55 15. 243 10.99789 0. 53931 . 79 4.823 3. 89858 0.81159
56 14.689 10.66982 0. 55116 80 4. 537 3.66071 0.82074
57 14. 143 10.35931 0. 56310 81 4.262 3.42900 0.82965
58 13. 603 10. 04630 0. 57.514 82 3.995 f 3.20258 0.83S36
59 13.07.2 9.73131 0. 58726 83 3.737 2.98024 0.84691
60 12. 549 9 .41474 0. 59943 84 3.484 2. 76106 0.85534
61 12. 029 9.09765 0.61163 85 3.236 2. 54.366 0.86371
62 11. 532 S. 78052 0.62382 86 2.992 2. 32.795 0.87200
63 11.039 8.46412 0.63600 87 2.752 2.11384 0.88024
64 10. 557 8. 14888 0.64812 S8 2. 517 1.90115 0.88842
65 10.088 7.83.552 0.66017 89 2.286 1.69107 0.89650
66 9 . 630 7. 52476 0.67212 90 2.062 1.48540 0.90441
67 9. 185 7.21699 (). 68396 91 1.845 1.28432 0.91214
68 8. 753 6.91298 0.69565 92 1. 637 1.09024 0.91961
69 8.333 6. 61301 0.70719 93 1.442 0.90647 0.92667
70 7. 926 6.31716 0.71857 94 1 .263 0.73687 0.93320
71 7. 532 6.02612 0.72976 95 1. 103 0. 58435 0.93906
72 7. 151 5. 74003 0.74077 96 0.975 0.46182 0.9437S
73 6, 782 5.45928 0.751.57 97 0.877 §s 0.94742
74 6.425 5. 18402 0.76215 98 0.746 0.2403 0.95229
75 6.08.1 4.91463 0.77251 99 0. 500 0.00000 0.96154
§

23
The first column shows the age of the person under consid-
eration.
The second column shows the corresponding “mean redemp-
tion period” and represents the time in years in which the pres-
ent values of annuities and reversions certain will become equal,
respectively, to the present value of annuities and reversions
contingent on the duration of life.
The third column shows the present value of an annuity for
life of One dollar per annum, the last payment being made at
the end of the year prior to the one in which death occurs.
The fourth column shows the present worth of one dollar
payable at the end of the year in which death occurs.
The “mean redemption period” is a mean between the last
payment of the annuity and the payment of the reversion, aver-
aging six months later than the former payment and six
months earlier than the latter payment.
The reversion or present value of $1, due at the end of the
year of death of a person aged thirty-five years, is found by
table No. I to be $0.34060, and such value of $50,000 would
be fifty thousand times as much, or $17,030, the amount upon
which tax accrues.
EXAMPLE I.
A person dying bequeaths to his nephew, aged forty years,
an annuity of one thousand dollars during life. What is the
present value of the annuity ?
Reference to table No. I shows that the present value of one
dollar a year, payable at the end of each year during the life of
a person aged forty years, is fifteen dollars nine cents two mills
and ninety-five one-hundredths of a mill ($15.09.295); there-
fore, the present value of one thousand dollars is one thousand
times as much, or fifteen thousand and ninety-two dollars and
ninety-five cents, the amount upon which tax accrues.
ExAMPLE 2.
A person dying bequeaths to his daughter, aged thirty-five
years, a life interest in personal property amounting to fifty
thousand dollars ($50,000), the estate to revert absolutely at
her death to other parties. Required the present value, at the
date of death of the testator, of the life interest of the daughter
24
in the estate; also, required at the same date, the present value
of the reversionary interest of said other parties in the estate.
At a net interest of four per cent per annum, the assumed
rate, the estate of $50,000 will realize an income or annuity of
$2,000 per annum. The present value of the sum of $1, pay-
able at the end of each year during the life of a person aged
thirty-five years, is found by table No. I to be $16.14437, and
the present value of an annuity of $2,OOO for the same time
would be two thousand times as much, or $32,288.74, the
amount upon which tax accrues. - •

TABLE No. 2.
Present value of annuities and reversions certain upon a 4 per cent basis.
NUMBER OF
Present worth of an annu-
ity of one dollar, pay-
able at the end of each
|Bresent worth of one dol-
lar, payable at the end
NUMBER of
Present worth of an annu-
ity of one dollar, pay-
able at the end of each
Present worth of one dol-
lar, payable at the end
YEARs. year, for a certain num- of a certain number of YEARs. year, for a certain num- of a certain number of .
ber of years. years. ber of years. years.
Annuity. Reversion. Annuity. Reversion.
1 $0.96154 $0.961538 16 11. 65229 0. 533908
2 1.88609 0.924.556 17 12. 16567 0. 513373
3 2. 77509 0.888996 18 12. 65929 0.493628
4 3. 62989 0.854804 19 13. 13394 0.474642
5 4.45182 0.821927 20 13.59032 0.456387
6 5. 24214 0.790314 21 14.02916 0.438834
7 6.00205 0.759918 22 14.451.11 0.421955
8 6.7327.4 0.730690 23 14.85684 0.4057.26
9 7.43533 0.702587 24 15. 24.696 0.390121
10 S. 11089 0.675564 25 15. 62208 0.375117
11 8.76047 0.649581 26 15.98.277 0.360689
12 9.38507 0.624597 27 16. 32958 0.346816
13 9.98565 0.600574 28 16. 66306 0.333477
14 10. 56312 0. 577475 29 16.98371 0.320651
15 11. 11839 0. 555265 30 17.29203 0.308319
26
EXAMPLE No. 3.
A man dies leaving personal property to the amount of
$50,000. His daughter to have the income from it for 20
years, it then to revert to his youngest son. What is the pres-
ent worth of these legacies?
The income from $50,000 would be $2,000 per annum,
assuming money at 4 per cent. \
The present worth of an annuity of $2,000 for 20 years will
be 2,000 times an annuity of $1 for 20 years. In table No. 2
opposite 20 we find the value of an annuity of $1 to be
$13.59032, therefore the present worth of an annuity of $2,000
will be $27,180.64.
A reversion of $1 at the end of 20 years is shown by
table No. 2 to be $0.456387, and a reversion of $50,000 will be
50,000 times as much, or $22,819.35.
UNIVERSITY OF MICH
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