Note in Litigation Estimated Expenses.

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duction, and the expenses of litigation in upholding a will or having it construed are also proper deductions. Matter of Maresi, 74 App. Div. 76, 77 N. Y. S. 76.

576. Disbursements for Benefit of Estate.

Disbursements honestly made by an executor or administrator in necessary litigation for the benefit of the estate are proper deductions. Matter of Thomas, 39 Misc. Rep. 223, 79 N. Y. S. 571.

577. Commissions of Trustee.

The statutory commissions of a trustee appointed by the will to pay over income to a life beneficiary should be deducted. Matter of Gihon, 169 N. Y. 443.

578. Deduction of Note in Litigation.

A note on which suit has been commenced by the administrator, and is pending when the appraisal for transfer tax is made, should be deducted from the valuation, and reserved for future appraisement in case the administrator succeeds in collecting it. Matter of Westurn, 152 N. Y. 93.

579. Estimated Expenses of Administration.

Where the expenses of administration are uncertain, they may be estimated, and such estimate deducted. Matter of Gould, 19 App. Div. 352, 46 N. Y. S. 506, 156 N. Y. 423; Matter of Westurn, 152 N. Y. 93.

580. Taxes.

Assessments so far completed that the name of the person named as owner cannot be changed or altered by the assessment officers before the death of such person shall be payable from his estate in due course of administration. Matter of Babcock, 115 N. Y. 450.

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Taxes - When a Proper Deduction.

See also Rundell v. Lakey, 40 N. Y. 513-517, where the question was raised between grantor and grantees. 581. Taxes under Greater New York Charter.*

Where decedent dies June 17, 1902, after the record of the assessed valuation and the time for application to revise and cancel same had expired (April 1st), but before the board of taxes and assessments has delivered to the board of aldermen the assessment-rolls (first Monday in July), and before the amount of the taxes have been extended thereon (July 1st to September 15th), the tax imposed upon his real and personal property are debts of his estate, and where his executors pay them in compliance with subdivision 2 of section 2719 of the Code of Civil Procedure, they must be allowed as a deduction by the appraiser. Matter of Hoffman, 42 Misc. Rep. 90, 85 N. Y. S. 1082. Following Matter of Babcock, 115 N. Y. 450; distinguishing Matter of Maresi, 74 App. Div. 76, 77 N. Y. S. 76.

But where it appears that the decedent died January 30, 1901, taxes for the year 1900 assessed against him in the city of New York are deductible from the value of the personal estate. Matter of Cook, N. Y. Law Journal, May 19, 1909, Surrogate Thomas, following Matter of Maresi, 74 App. Div. 76, 77 N. Y. S. 76.

* Provisions of New York Charter Relative to Taxes. Section 889. First Tuesday of September assesment commenced. Section 892. Second Monday of January to April 1, the books of record are open for inspection, then closed to enable board of taxes and assessments to prepare assessment-roll.

Section 895. Board of taxes and assesments may increase or diminish value of real or personal property before April 1.

Section 907. From April 1 to July 1, board of taxes and assessments are to prepare assessment-rolls and deliver the same to the board of aldermen the first Monday of July.

Section 909. The president of board of aldermen to cause to be properly computed the taxes, etc., between first Monday of July and September 15.

Section 911. Aldermen are to deliver to receivers of tax on or before September 15, with warrant for collection.

Id.; When Not a Proper Deduction.

582. Taxes Assessed in Decedent's Lifetime.

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Taxes assessed against real or personal property of the testator in his lifetime are debts owing by the decedent and proper deductions. Matter of Liss, 39 Misc. Rep. 123, 78 N. Y. S. 969.

Taxes levied subsequent to testator's death, but assessed prior to his death, should be deducted if paid by the executors. Matter of Brundage, 31 App. Div. 348, 52 N. Y. S. 362.

583. Id. When Assessment-roll Completed.

An assessment, so far completed that the name of the person cannot be changed by the assessors before the death of such person, is payable from his estate in the course of administration. Matter of Babcock, 115 N. Y. 451.

Taxes due at death of decedent are payable out of his personal estate, and taxes accruing subsequently are chargeable to the land. Seabury v. Bowen, 3 Bradf. 207; Griswold v. Griswold, 4 Bradf. 216; Smith v. Cornell, 111 N. Y. 554.

585. Taxes under Greater New York Charter, When Not Deductible.

Under this charter it is held that the assessment-roll is not completed until the amount chargeable against each parcel of land is computed and set down, when the lien attaches and it is a debt and therefore deductible. Burr v. Palmer, 53 App. Div. 358, 65 N. Y. S. 1056.

Accordingly held in the Matter of Maresi, 74 App. Div. 76, 77 N. Y. S. 76, that where testator died January 30, 1901, taxes for the year 1900 are not deductible from his personal estate and the tax was not a lien at the time of death. But see Matter of Hoffman, 42 Misc. Rep. 90, 85 N. Y. S. 1082.

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Taxes on Property without This State.

586. Taxes Due on Real Estate without This State Not a Debt to Be Deducted from Decedent's Personal Estate.

Section 2719 of the Code of Civil Procedure, in prescribing the order in which "debts" of the estate shall be paid, directs (subdivision 2) that a preference shall be given to "taxes assessed on the property of the deceased previous to his death." In the Matter of Lennox, N. Y. Law Journal, June 11, 1908, the executors of the estate claimed as a deduction the sum of $650 due for taxes on decedent's real estate situate in the State of Colorado. Surrogate Beckett held that if the taxes were due upon real estate in this State there could be no doubt whatsoever of their being a liability of the estate; that in the absence of evidence showing what the statute law of Colorado is in regard to the taxation of lands of a nonresident, that he was obliged to presume that such statute law was the same as our own, in which event the land would be sold within a certain time if the tax was not paid, and no personal action could have been maintained against the nonresident owner, the State having no jurisdiction to assess a tax as a personal charge against a nonresident, and therefore the taxes due on decedent's real estate in Colorado were not a personal liability of the decedent and are not within the signification of the word" debts" as used in section 2719 of the Code of Civil Procedure.

587. Where Taxes on Unproductive Real Property Held in Trust Not Deductible from Life Tenant's Estate.

In the appraisal of the estate of Maria M. Knapp, late of Suffolk county, deceased, it appears that a part of the trust estate created by the husband of said deceased for her life use consisted of unproductive and

Id.; on Unproductive Real Property.

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unimproved real property situate at Washington Heights, New York city, and the taxes were allowed to accrue on said real estate for many years and were paid when there was a market for this real property between the years 1890 and 1900, from the proceeds. of sale of said property from time to time, so that when the decedent died, March 30, 1904, the amount of such accumulated taxes, paid as aforesaid, was $46,360.48, and in the appraisal of decedent's estate this item was allowed as a deduction, the executor claiming that the taxes were properly a charge upon the income, and that therefore they constituted a personal claim against Maria M. Knapp in her lifetime and were a proper and valid claim against her estate. The Comptroller appealed and the surrogate, in a written opinion (not reported), held that this item was not a proper deduction as a debt owing by decedent's estate; that the testimony shows that for a long time there was no market for this property, during which time the life tenant had never enjoyed any income therefrom; that the holding of the property until it became marketable was for the benefit of the remaindermen, and as they received the larger benefit they should bear the expense of carrying it, the life tenant suffering only the loss of interest upon the portion of the principal used in discharging these taxes. Citing In re Martens Estate, 39 N. Y. S. 189; Crane v. Crane, 2 Redf. 244; Matter of Kendall, 4 Dem. 133; Matter of Housman, 4 Dem. 404.

588. Expense of Trust over Real Property Should Not Be Deducted from the Personal Estate.

For the purpose of the transfer tax the parties interested in the estate take their interest in the prop