Opinion
No. 39/675.
12-20-1917
TITLE GUARANTEE & TRUST CO. v. LOHRKE et al.
Pitney, Hardin & Skinner, of Newark (Waldron M. Ward, of Newark, on the brief), for complainant. Albert W. Harris, of Newark, for defendants.
Proceeding by the Title Guarantee & Trust Company, executor, etc., against Jennie Lohrke and others. On exceptions to an account of executors and trustees. Exceptions overruled.
Pitney, Hardin & Skinner, of Newark (Waldron M. Ward, of Newark, on the brief), for complainant.
Albert W. Harris, of Newark, for defendants.
FOSTER, V. C. The executors and trustees under the last will and testament of Otto E. Lohrke, deceased, filed their account in this court, and the guardian ad litem of the infant defendants and beneficiaries under the will filed a number of exceptions thereto. All the exceptions were disposed of by an order advised by me on December 26, 1916, except the fourth, which is now presented for consideration, and which excepts to the allowance to the accountant of the sum of $9,440 paid to the state treasurer for the inheritance tax levied upon the life estate of testator's widow, created for her by the terms of his will, which gives the residue of his estate to his executors, in trust, to pay the entire net income to his widow for life, with remainder to his children.
The exceptants claim this tax should be paid by the life tenant, or from the income of the fund held in trust for her, and not from the principal of the funds.
This question has been considered and decided by me in a memorandum filed in the Prerogative Court on December 18, 1917, in which I held such tax was payable from corpus, and not from income, and there is nothing in the exception before me thatshould cause me to modify or change the conclusions reached therein. The exception to this allowance will therefore be overruled.
Regarding the tax upon the specific bequest of furnishings, etc., to Mrs. Lohrke, under the second paragraph of the will, as nothing has been shown to the contrary, I assume that the exemption to which she as the widow of the testator was entitled was claimed and allowed in determining the value of, and the amount of tax to be paid on, the property transferred by the will for the purpose of creating the trust fund, and therefore that Mrs. Lohrke should personally pay the amount of tax levied upon her specific legacy.