Undetermined Interests How Appraised. § 230 will be modified so as to assess the tax upon all of the interests included in the fund transferred for the purpose of the trust, against the trustees as such. The amount of the tax against the trustee will be the aggregate of the sum determined by the appraiser as the taxes on the interests of the several trust beneficiaries, computed upon the probable values of their several contingent interests, and the order will show how the result is reached. Matter of Guggenheim, N. Y. Law Journal, January 4, 1906, Surrogate Thomas. Affirmed, 116 App. Div. 914, 189 N. Y. 561. 528. Undetermined Interest in a Deceased Brother's Estate How Appraised. In transfer tax proceedings on the estate of Cornelius W. Lawrence, who died January 28, 1905, his principal asset was his interest in the estate of his brother, estimated at $3,574.80, and after making proper deductions an order was entered assessing a tax on the interest of a large number of collateral relatives respectively. The administrator thereafter instituted a proceeding before the surrogate upon petition and notice of motion for an order fixing the 28th day of August, 1907, as the date of the transfer of the estate of decedent, it appearing that was the date when the administrators received the decedent's interest in his brother's estate, and Surrogate Thomas modified his taxing order, holding that the value of the right of this decedent in the estate of his brother is to be ascertained by discounting the amount set forth in the report of the appraiser for the period between the death of decedent and the settlement of the brother's estate, to wit, April 28, 1907, and that after such discounting the penalty for nonpayment will be remitted § 230 Debts Deducted from Share of Legatee. and the interest computed at 6 per cent. from the date of decedent's death. Matter of Lawrence, N. Y. Law Journal, November 12, 1907. 529. When Will Directs Debts Due the Estate to Be Deducted from Share of Legatee. Decedent's sons-in-law were indebted to him in the sum of $143,760.93. In the affidavit of assets submitted to the appraiser by the executor this indebtedness was appraised at its full value and the report of the appraiser was correct in including it in the assets of decedent's estate. Matter of Gould, 156 N. Y. 423. But as the decedent directed that the amount of such indebtedness should be deducted from the share of his estate bequeathed to the wives of the persons so indebted, the appraiser erred in failing to make the necessary deduction from the distributive shares of decedent's daughters whose husbands were indebted to the decedent. Matter of O'Day, N. Y. Law Journal, December 29, 1908, Surrogate Beckett. 530. Vested Interests in Real Property under Trust DeedNot Affected by Subsequent Law Taxing Real Property Passing to 1-Per Cent. Class. Where the estates and interests of the persons taking rights in real and personal property conveyed by a trust deed vests in such persons on the date of the execution of the deed, a direction therein to convey and distribute on the death of the donor did not prevent the immediate vesting of the title, and the fee vested without any new conveyance or distribution. Watkins v. Reynolds, 123 N. Y. 211. The estates and interests of such grantees were therefore immune from the provisions of the Act of 1903 imposing a tax upon Decedent's Interest as Residuary Legatee. § 230 transfers of real property from a parent to his children and could not affect their vested rights under the trust deed. Matter of James, N. Y. Law Journal, November 1, 1905, Surrogate Thomas. 531. When Decedent's Interest as Residuary Legatee in an Estate Will Be Considered in Determining Whether His Property in This State Equals the Taxable Limitation. In the estate of Charles S. Thurston, a nonresident decedent, it appeared in transfer tax proceedings upon his estate in New York county that the decedent's net estate in this State amounted to $5,039.31, and that in addition thereto the decedent had an interest as one of the residuary legatees in a fund subject to two life estates in the estate of Louis Thurston Hoyt which had theretofore been fixed by the surrogate on the transfer tax appraisal in his estate as of the value of $32,678.75. It further appeared that in a transfer tax proceeding on the estate of Cornelia A. De Wint, also one of the residuary legatees under the will of said Louis Thurston Hoyt, that Surrogate Thomas had held that "The order fixing the tax on the full face value of the legacies not payable until the expiration of two lives is clearly erroneous" (Matter of DeWint, N. Y. Law Journal, March 4, 1905), and the appraiser, following that decision, reported that the interest of the decedent in the residuary estate aforesaid, could not be taxed at the present time, and it therefore appearing that the entire estate of decedent within this State was less than $10,000, and passed to decedent's widow and son, the same was not subject to tax, and an order was entered thereon exempting the estate from taxation. The Comptroller appealed on the ground that it was an error for the appraiser to exclude from § 230 When Tax to Be Assessed at Highest Rate. consideration the value of decedent's interest in the estate of Louis Thurston Hoyt, which had been determined and fixed at $32,678.75; that the present value of the two life estates in said interest should be determined by the Superintendent of Insurance and the remainder thereof, together with the other property of decedent in this State, was presently taxable. The surrogate's opinion in the appeal is as follows: "In the appraisal of the estate of Louis Thurston Hoyt for transfer tax purposes the value of the interest which Charles S. Thurston took in his residuary estate was fixed at $32,678.75, after deducting the values of the two intervening life estates. It is not contended that this interest is subject to any contingency which may defeat its ultimate payment to the legal representatives of Charles S. Thurston upon the falling in of these intervening estates, nor that the fund itself is not in existence or its amount ascertained. It is therefore property within this State passing under the will of Charles S. Thurston (Matter of Clinch, 180 N. Y. 300; Matter of Daly, 100 App. Div. 373; affd., 182 N. Y. 524). The report of the appraiser shows that the other property of this decedent within the State amounts to $5,039.31. It is therefore obvious that the decedent left property within this State exceeding in value $10,000 and that his estate is taxable. For the purposes of this ap peal this is all that is now necessary to determine. Any order that might now be made fixing the tax upon property which has never been under the control of the executor would, so far as the tax upon that property is concerned, be unenforceable against him (Matter of Dingman, 66 App. Div. 228). The order to be made on this appeal will direct that tax be fixed upon the sum of $5,039.31 and that the assessment of tax upon the decedent's interest in the estate of Louis Thurston Hoyt be postponed until the falling in of the life estates." Matter of Thurston, N. Y. Law Journal, November 15, 1907. 532. Where Possession of Remainder Depends upon Remainderman Surviving the Life Tenant, Tax Will Be Assessed at the Highest Rate. Mary Ritchie Bennet, a resident of New Jersey, died February 26, 1904, leaving a will which was thereafter proved in New York county, New York, and Union county, New Jersey. Proceedings to determine the transfer tax on this estate were instituted by the executors before the surrogate of New York county. When Decree of Another Court Is a Bar. § 230 The testatrix by her will gave her residuary estate to her executors to pay the income thereof to her daughter, Alys R. Julien, for life, with remainder to her issue if any survived her. If no issue survived her then the remainder was given to persons taxable at 5 per cent. At the time of the death of testatrix her daughter had no issue, but a child was subsequently born on July 12, 1904, and was living when these proceedings were had. The appraiser determined the value of the remainder estate as passing to the persons in the 5-per cent. class under section 230 of the Tax Law, and order was entered taxing such remainder at the highest rate. The executors appealed, claiming that such remainder interest was vested pursuant to the terms of decedent's will in Jacqueline Julien, the infant granddaughter of decedent, at the time of making the report and order and therefore was taxable only at the rate of 1 per cent. Surrogate Fitzgerald held that the remainder interests were taxable at 5 per cent. (citing Matter of Vanderbilt, 172 N. Y. 69). Matter of Bennett, N. Y. Law Journal, October 24, 1906; affd., 120 App. Div. 904. 533. Where Decree of Court in Another State Is a Bar. Where the decree of the probate court is final and bars all persons having claims against the estate, the courts of another State must, under the full faith and credit clause of the Federal Constitution, give similar force and effect to such a decree when rendered by a court having jurisdiction to probate the will and administer the estate, and held, that such a final decree in New Jersey was a bar in the courts of another State against the taxing authorities of the latter State at |