§ 220 Not in Contemplation of Death. of death" has escaped taxation cannot be heard until the grantee has had notice of the proceeding to fix the tax. Matter of Wood, 40 Misc. Rep. 155, 81 N. Y. S. 511. 164. Gifts, Not Made in Contemplation of Death of Donor. A gift inter vivos is not a transfer "made in contemplation of the death of the grantor" within the meaning of the statute, unless made under circumstances which impress it with the distinguishing characteristics of a gift causa mortis, or unless made with the purpose of evading the provisions of the statute. Matter of Spaulding, 49 App. Div. 541, 63 N. Y. S. 694; affd., 163 N. Y. 607. On the general question as to what constitutes a gift inter vivos see Matter of Swade, 65 App. Div. 592, 72 N. Y. S. 1030. A man eighty-six years old, whose mental faculties were unimpaired, but whose physical powers were gradually deteriorating, gave to a son securities valued at over $1,500,000, to be equally divided between himself and his brother and sister. The securities were delivered to the children, and the father, who died about a year after making the gift, never saw the securities or attempted to exercise any control over them. Held, that the gifts were not "made in contemplation of the death of the grantor," within the meaning of the statute. Matter of Spaulding, 49 App. Div. 541, 63 N. Y. S. 694; affd., 163 N. Y. 607. The president of a corporation, being ill, and advised by his physician to take a long vacation when he recovered, transferred all his stock in such corporation to his wife, excepting one share, and the wife became a member of the company at once and transacted business in his place. The transfer of the stock was in writing and absolute, and on the same day that he executed the transfer of the stock he made his will, leaving his wife his sole beneficiary, and three weeks thereafter he died. Held, that these facts did not justify a finding that the transfer of the stock was made in contemplation of death of the donor." Matter of Mahlstedt, 67 App. Div. 176, 73 N. Y. S. 818; appeal dismissed, 171 N. Y. 652. Gift of shares of stock of a bank of which the donor is president, and also stock in a pulp company of which the donor is a director, by assignments written on the backs of the stock certificates, which are thereupon delivered to the donees, who retain possession of them until the donor's death, held gifts inter vivos, and not subject to a transfer tax on the ground that they were made in contemplation of the donor's death, it appearing that the donor was eighty-six years old when he died, and that the stock certificates were transferred over three years prior to his death. The court held further that such gifts are not subject to a transfer tax where it does not appear that they were made in bad faith or with intent to evade the transfer tax, or that they were accompanied by a trust or enforceable reversion under which the dividends upon the stock were to be paid to the donor during life. The fact that the donor during life did receive the dividends upon the stock transferred is not of itself sufficient to establish the existence of a valid trust or reservation in respect to the dividends, the court holding that such acts could as well be predicated upon the voluntary sufferance of the donees as upon a prior contract. Matter of Bullard, 76 App. Div. 207, 78 N. Y. S. 491. Where less than two months prior to a decedent's § 220 Not in Contemplation of Death. of death" has escaped taxation cannot be heard until the grantee has had notice of the proceeding to fix the tax. Matter of Wood, 40 Misc. Rep. 155, 81 N. Y. S. 511. 164. Gifts, Not Made in Contemplation of Death of Donor. A gift inter vivos is not a transfer "made in contemplation of the death of the grantor" within the meaning of the statute, unless made under circumstances which impress it with the distinguishing characteristics of a gift causa mortis, or unless made with the purpose of evading the provisions of the statute. Matter of Spaulding, 49 App. Div. 541, 63 N. Y. S. 694; affd., 163 N. Y. 607. On the general question as to what constitutes a gift inter vivos see Matter of Swade, 65 App. Div. 592, 72 N. Y. S. 1030. A man eighty-six years old, whose mental faculties were unimpaired, but whose physical powers were gradually deteriorating, gave to a son securities valued at over $1,500,000, to be equally divided between himself and his brother and sister. The securities were delivered to the children, and the father, who died about a year after making the gift, never saw the securities or attempted to exercise any control over them. Held, that the gifts were not " made in contemplation of the death of the grantor," within the meaning of the statute. Matter of Spaulding, 49 App. Div. 541, 63 N. Y. S. 694; affd., 163 N. Y. 607. The president of a corporation, being ill, and advised by his physician to take a long vacation when he recovered, transferred all his stock in such corporation to his wife, excepting one share, and the wife became a member of the company at once and transacted business in his place. The transfer of the stock was in writing and absolute, and on the same day that he executed the transfer of the stock he made his will, leaving his wife his sole beneficiary, and three weeks thereafter he died. Held, that these facts did not justify a finding that the transfer of the stock was made in contemplation of death of the donor." Matter of Mahlstedt, 67 App. Div. 176, 73 N. Y. S. 818; appeal dismissed, 171 N. Y. 652. Gift of shares of stock of a bank of which the donor is president, and also stock in a pulp company of which the donor is a director, by assignments written on the backs of the stock certificates, which are thereupon delivered to the donees, who retain possession of them until the donor's death, held gifts inter vivos, and not subject to a transfer tax on the ground that they were made in contemplation of the donor's death, it appearing that the donor was eighty-six years old when he died, and that the stock certificates were transferred over three years prior to his death. The court held further that such gifts are not subject to a transfer tax where it does not appear that they were made in bad faith or with intent to evade the transfer tax, or that they were accompanied by a trust or enforceable reversion under which the dividends upon the stock were to be paid to the donor during life. The fact that the donor during life did receive the dividends upon the stock transferred is not of itself sufficient to establish the existence of a valid trust or reservation in respect to the dividends, the court holding that such acts could as well be predicated upon the voluntary sufferance of the donees as upon a prior contract. Matter of Bullard, 76 App. Div. 207, 78 N. Y. S. 491. Where less than two months prior to a decedent's death he transferred to his five children stocks and securities aggregating $250,000, held, that such transfer was not made in contemplation of death, it appearing that he had for a year or more prior to his death contemplated making such transfers, although at the time the transfers were made he was an old man and in poor health. Matter of Crary, 31 Misc. Rep. 72, 64 N. Y. S 566. Transfers of stocks made in consideration of an agreement conditioned for the payment of an annuity to the party making the transfer, and to other designated persons, with a proviso that, in case of default in payment of the annuities, the depositary might collect sufficient dividends on the securities to pay the amount due, or sell them to raise such amount, are not subject to taxation under chapter 399, Laws 1892, as having been made in contemplation of the death of the party making such transfer. Matter of Edgerton, 35 App. Div. 125, 54 N. Y. S. 700. 165. Id. By Deed - Not" in Contemplation of Death." The decedent was seventy-seven years of age when he died, leaving an estate of $160,000, and leaving no widow or children him surviving. By his will his property passed to sisters and half-sisters, a favorite nephew receiving the bulk of his estate. He was in failing health for two or three months before his death and on December 1, 1906, was confined to his bed and attended thereafter by physicians until his death. On December 22 a consultation of doctors was had. On December 24 he conveyed, by deed, certain real estate to the city of Jamestown, valued at $20,000, for the purpose of erecting and maintaining a nonsectarian hospital thereon. He executed this deed while |