In re the Transfer Tax upon the Estate of Cossitt

Headnote

Transfer tax — mortgage to decedent and another as “joint tenants with the right of survivorship ”— subject to transfer tax upon entire amount unpaid at death of decedent, notwithstanding that property covered by mortgage was owned by mortgagees prior to 1916.

Matter of Cossitt, 204 App. Div. 545 , affirmed.

Appeal from an order of the Appellate Division of the Supreme Court in the fourth judicial department, entered March 7, 1923, which affirmed an order of the Monroe County Surrogate’s Court assessing a transfer tax upon the estate of Frances A. Cossitt, deceased. The only question at issue was as to the tax upon a bond and mortgage given on the 29th day of March, 1920, by the Rochester Brass and Wire Works to decedent and Emma A. Laurin, “ as joint tenants with the right of survivorship.” It appeared that this mortgage was given to secure a part of the purchase price of premises on Exchange street, Rochester, which had been owned since 1897 by the mortgagees as such joint tenants. The surrogate and the Appellate Division held that under subsivision 7 of section 220 of the Tax Law, as amended in 1915, this security was subject to tax upon the entire amount unpaid thereon at the time of the death of said Frances A. Cossitt. The executor contended that the transfer of this bond and mortgage upon the death of one of the joint tenants was of property owned prior to the enactment’ of chapter 664 of the Laws of 1915, because of the fact that the real estate, upon which the mortgage was a hen, was owned jointly by the mortgagees before that date.