Majority
p. 434Matter of the Proceedings for the Assessment of the Collateral Tax, on the Estate of Alexander J. Wormser, Deceased. (Surrogate’s Court, New York County, December, 1901.)
Headnote
Transfer tax — Powers of appraiser in New York county — Debts deductible.A transfer tax appraiser of the county of New York may hear evidence in regard to the decedent’s debts, but only such of them are deductible as could have been enforced against the estate had payment been resisted by it.
Proceedings upon the report of an appraiser.
Hoadly, Lauterbach & Johnson, for-executor.
Edward H. Fallows, for comptroller.
Debts which are allotvable as a deduction from the taxable estate are only such as could have béen enforced against the estate if payment had been resisted. Matter of Gould, 19 App. Div. 352 . While it has been held in other counties that an . appraiser cannot hear evidence in regard to the debts of the deceased, funeral expenses and expenses of administration, but that
p. 435
deductions therefor must he made by the surrogate (Matter of Millward, 6 Misc. Rep. 425 ; Matter of Ludlow, 4 id. 594), it has always been the practice in this county for the appraiser to receive such evidence as might be submitted to him to establish claims for deduction, and his conclusions have been adopted by the court, unless objection was made thereto or they were palpably improper. This method of procedure has manifest advantages, and I see no reason for changing it. In this proceeding, practically no evidence was introduced before the appraiser to sustain the very large deduction made for alleged debts, notwithstanding the assets amounted to more than eight hundred thousand dollars, and the allowances reduced the estate below the taxable limit. The matter will be remitted to the appraiser to receive such proof as may be offered as to the deductions claimed.
Decreed accordingly.
Cases cited
- In re Gould's Estate 19 App. Div. 352 p. 434
- In re Millward's Estate 6 Misc. Rep. 425 p. 435