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Home > Journals > Michigan Law Review > MLR > Volume 37 > Issue 1 (1938)

 

Abstract

Testator had been bequeathed a life interest in the income of certain trusts, and in addition the corpus thereof in case she were living at the termination of those trusts, or, in the event of her death prior to the termination of the trusts, a power to appoint the persons who should receive the income for the remainder of the trust period and the corpus on distribution thereof. Under the then current Wisconsin statutes this transfer to testator was truced as if she had received a fee. On appeal, it was held that this was correct but that if the contingent remainder should be defeated by the death of the testator before the expiration of the trust term, the true might be adjusted. Testator died before the expiration of the trust term, and exercised the power of appointment in her will. The appointees instituted proceedings for a redetermination of the tax on the original transfer, and an order was entered taxing the transfer of a life estate to testator, and of the remainder to her appointees. This redetermination was opposed by the state. In the present proceeding to determine the inheritance tax payable by the beneficiaries who took under testator's will, it was ordered that the passage of the remainder to the appointees on the exercise of the power by the testator-donee should be taxed as if the property in question were the donee's property. The appointees appealed, contending that the transfer was already taxed as coming under the estate of the donor of the power, and that the matter was res adjudicata. Held, that the appointees took as such under the will of the donee, and under the Wisconsin statute such transfer was required to be taxed. In re Morgan's Will, (Wis. 1938) 277 N. W. 650.

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