he (Langley) should become the absolute owner of this property until at or after the death of the grantor, and that the transfer tax has been properly assessed. Citing Matter of Cornell, 170 N. Y. 423; Matter of Brandreth, 169 N. Y. 437.

The Appellate Division of the Second Department affirmed the order of the surrogate so far as it imposed a tax upon the property transferred by the decedent under the trust deed to Langley, but modified the order in other respects. Matter of Skinner, 106 App. Div. 217.

One of four certain trust deeds provides that the avails shall go to the donor during his lifetime, and from and after his death the avails were to go to the donor's grandson. Held, that such deed did not vest the beneficiary named with any right of property until the death of the donor, at which time it became taxable. Matter of Masury, 28 App. Div. 580, 51 N. Y. S. 331; affd., 159 N. Y. 532.

A father executed a trust deed in 1892, transferring certain personal property to trustees, to invest the principal and, from the net income, to pay during his life to his daughter the sum of $1,200 annually, the balance of such income, if any, to be returned to himself, and at his death to pay over the corpus of the trust fund to said daughter, if living, or, if she should be dead, then to her issue, or, in default of issue, then to such persons as the daughter should by her will appoint, or, in default of such appointment, then to such persons as would be entitled to the property if the daughter had died intestate and in possession of the property, excepting her mother, who released her right of succession thereto. The daughter died in September, 1896, unmarried, without issue and with

Id.; Conditions or Agreement.

§ 220

out making any appointment. The father died in April, 1898. Held, that, as the contingent remainders given to the next of kin of the daughter could not take effect in possession or enjoyment until the father's death, the transfer to them was taxable under subdivision 3 of section 220, as a gift taking effect at or after the donor's death. Matter of Cruger, 54 App. Div. 405, 66 N. Y. S. 636; affd., 166 N. Y. 602, citing Matter of Greene, 153 N. Y. 223.

168. Id.; Where Donee only Survived the Donor Three Days.

A gift intended to take effect in possession or enjoyment at the death of the donor is taxable, although the donee survived the donor for only three days, having died before there had been any administration upon the donor's estate, and before actual delivery of the certificate representing the subject of the gift had been made to the donee. The transfer from the donor to the donee is taxable; also the transfer of the subject of the gift from the donee to her legatee is taxable. Matter of Borup, 28 Misc. Rep. 474, 59 N. Y. S. 1097.

169. Id.; upon Conditions or Agreement.

A gift of corporate stock upon conditions that all dividends declared upon it for the term of his life should be received by the owner, and that he should have the right to vote upon it the same as though no transfer had been made, is a gift of a remainder in the stock after the death of the donor, and is taxable. Matter of Brandreth, 169 N. N. 437, revg. same case, 58 App. Div. 575, 69 N. Y. S. 142.

A gift of securities under an agreement that the donor should have during his life "all or such part of the net income thereof as he might wish," the donee

§ 220

Id.; Conditions or Agreement.

to have the possession and management of the securities, does not make the donee the absolute owner thereof, but only the holder thereof in trust, until the death of the donor, to pay the income thereof to the donor, and such gift is taxable. Matter of Cornell, 170 N. Y. 423, following Matter of Brandreth, 169 N. Y. 437; modifying Matter of Cornell, 66 App. Div. 162, 73 N. Y. S. 32.

Where the title to personal property passed to the donee upon its delivery by the donor, but the gift was subject to revocation at all times during the lifetime of the donor, it took effect in enjoyment after the death of the donor and was taxable. Matter of Edwards, 85 Hun, 436, 32 N. Y. S. 901; affd., 146 N. Y. 380, no opinion.

Where a testator, after making a will in favor of his wife and children, conveys his property in trust for the maintenance of himself and family, with direc. tion that at his death it be disposed of according to the terms of his will, the property is taxable. Matter of Johnson, 47 N. Y. St. R. 391, 19 N. Y. S. 963.

Where a testator, after placing unrecorded deeds executed by him, and securities assigned by him, in envelopes inscribed as the "property " of the proposed transferees, and after placing the envelopes in a box in a bank, labeled with his name and that of a transferee, continues to control the real estate and receive the income of the securities, the property is subject to the transfer tax. Matter of Sharer, 36 Misc. Rep. 502, 73 N. Y. S. 1057.

A husband in his lifetime transferred from time to time to his wife's name certain firm profits, which he had invested with his firm in a special account, stating as a reason therefor that, in case of any trouble in the

Id.; Failure to Deliver Deed.

§ 220

concern, he would have something for his wife and children which the creditors could not touch. The wife dies before the husband, and the property was held subject to the transfer tax, although all the children signed an instrument permitting the husband to treat the money as his own. Matter of Anthony, 40 Misc. Rep. 497, 82 N. Y. S. 789.

170. Id.; Where Deed Is Not to Be Delivered to Grantee until after Grantor's Death.

In the appraisal of the estate of Henry G. Peters, it appeared that the decedent died July 26, 1907, and that in the month of February of that year he conveyed by deed certain premises in New York city to his daughter-in-law, but directed his attorney to hold the deed as agent for his daughter-in-law until his death, although the decedent stated to the attorney that the daughter-in-law was to have title to the property from the date of the execution of the deed. The appraiser included this property in his report and the daughterin-law appealed from the taxing order. Surrogate Thomas in affirming the taxing order, held, that the transfer of this real estate is taxable as one intended to take effect in possession or enjoyment at or after the death of the decedent. Matter of Peters, N. Y. Law Journal, March 25, 1909.

171. Id.; Interest in Fund Retained by Grantor in Trust Deed Is Taxable at Her Death.

Where a decedent several years before her death transferred to a foreign trustee certain personal property consisting of bonds and stocks upon trust to pay to her during life one-quarter of the income, and the remaining three-quarters to her three children, and

$ 220

Id.; Agreement to Pay Dividends.

after her death to continue to pay the income or transfer the principal to her said children or their issue as in said deed provided, it was held that the part, the income of which was reserved to the intestate during life, was subject to the tax, and that the discrimination made by the statute with respect to such part was not so unreasonable as to affect the constitutionality of the provision. Matter of Keeney, 194 N. Y. 281.

In this case it was not contended before the Surrogate that the three-fourths of the trust estate, the income of which was payable to the intestate's children, was subject to a transfer tax. Matter of Masury, 28 App. Div. 532; affd., 159 N. Y. 532.

172. Id.; Agreement to Pay Dividends to Donor - Taxable Transfer.

In the Matter of Ettenheimer (not reported) it appears that the decedent, about five years before his death, transferred to his daughter certain shares of stock, the transaction being evidenced by the follow ing duly acknowledged instrument under seal, to wit:

"My father, Elias S. Ettenheimer, has this day transferred to me two hundred (200) shares of the stock of the National Bank of Savannah, Ga., being certificate No. 1135. In consideration thereof, I hereby agree that my father shall receive the dividends of said stock during his natural life, whether said stock shall remain standing in his name or shall be transferred to mine.

"Witness my hand and seal this 16th day of December, 1902.

"CLARA MYERS. [L. 8.]"

Evidence was given of an oral agreement on the part of the daughter that in case of a sale of the stock in her father's lifetime she would pay him a sum each year equal to the dividends declared on said stock.

The appraiser included the value of this stock in the appraisal of decedent's estate and the surrogate entered an order thereon assessing a tax of 1 per sent.