Bequest to the United States.

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question, as the annuity, whatever its purpose, was a transfer by the will of the decedent. Matter of Huber, 86 App. Div. 458, 83 N. Y. S. 769, citing Matter of Gould, 156 N. Y. 423.

61. Insurance Policy Payable to Decedent's Executors, etc.

A policy of insurance upon the life of a decedent held by him at the time of his death, payable to his executors, administrators and assigns, or to his personal representatives, is property, owned by him at his death within the meaning of the Collateral Inheritance Act of 1887, and so, under that act, is subject to appraisal and taxation. Matter of Knoedler, 140 N. Y. 377.

62. Shares of Stock in Joint-Stock Association.

The shares of a joint-stock association constitute personal property and are taxable as such, irrespective of the character of the property represented thereby, whether real or personal, and the interest of a deceased shareholder in the realty of a joint-stock association is personal property, and under chapter 215, Laws of 1891, a bequest thereof is subject to the transfer tax. Matter of Jones, 172 N. Y. 575.

63. Stocks of Foreign Corporations.

Stocks of foreign corporations held by an executor as such are to be regarded as part of the estate and so the right to succession thereto is subject to payment of the tax imposed by said act. Matter of Merriam, 141 N. Y. 479-485.

64. A Bequest to the United States Is Taxable.

The United States is to be regarded as a body politic and corporate, and so far as this State is concerned,

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Legacy in Lieu of Dower.

it is a foreign, not a domestic, corporation. Code Civ. Proc., § 3343, subd. 18.) Under section 1, chapter 399, Laws of 1892, which imposes a tax upon the transfer by will or intestate law of any property of the value of $500 to persons or corporations not exempt by law from taxation," a bequest to the United State is subject to the tax so imposed. Matter of Merriam, 141 N. Y. 479; Matter of Cullom, 145 N. Y. 593.

65. Legacy in Payment of Debt for Services.

The transfer by will, subjected to taxation by the Act of 1892, is not limited to property gratuitously given by will, but extends to a testamentary transfer in payment of a debt. It matters not what the motive of a transfer by will may be, whether to pay a debt, discharge some moral obligation, or to benefit a relative. If the devise or bequest is accepted by the beneficiary, the transfer is made by will, within the meaning of the Transfer Tax Act. Matter of Gould, 156 N. Y. 423; Matter of Doty, 7 Misc. Rep. 193, 27 N. Y. S. 653.

66. Legacy to the Widow "in Lieu of Dower" Is Taxable.

A legacy given the testator's widow in lieu of dower, if accepted by her, is taxable for the reason that there has then been a transfer to her by will. Matter of Riemann, 42 Misc. Rep. 648, 87 N. Y. S. 731, following Matter of Gould, 156 N. Y. 423; Matter of Barbey, 114 N. Y. S. 725.

67. Election between Bequest and Dower When Widow Dies within the Statutory Year.

The right of election between dower and a legacy in lieu thereof is personal to the widow and does not pass

Seat in N. Y. Stock Exchange.

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to her personal representatives. The death of the widow occurring within the statutory year after her husband's death, without having exercised her election vests the right to collect the legacy in her executor. (Real Property Law, chap. 547, Laws 1896, §§ 180, 181; §§ 200, 201, chap. 50, Consolidated Laws, being chap. 52, Laws of 1909.)

Where the widow is left a legacy in lieu of her dower, her right to attack the will for any legal reason still exists, and an action by her to contest its probate is not to be construed as an election to take dower if the will is set aside, or to take the devise or bequest under the will if it is sustained. Flynn v. McDermott, 183 N. Y. 62.

68. Seat or Membership in New York Stock Exchange.

A seat or membership in the New York Stock Exchange of a nonresident of the State of New York upon the death of such nonresident is subject to a transfer tax in this State. Matter of Curtis, 31 Misc. Rep. 83; Matter of Glendinning, 68 App. Div. 125, 74 N. Y. S. 190; affd., 171 N. Y. 684. To the same effect Matter of Hellman, 174 N. Y. 254; revg. 77 App. Div. 355, 79 N. Y. S. 201. The later decision was subsequent to revision of the Tax Law, and the consolidation of the previous legislation into a single statute chapter 908, Laws of 1896.

69. United States Bonds Prior to Act of 1892, and after March 21, 1898.

It was established prior to the Act of 1892 that transfers of United States bonds were subject to the tax. Matter of Howard, 5 Dem. 483; Matter of Tuigg's Estate, 15 N. Y. S. 548.

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Stocks Pledged as Collateral.

A transfer of United States bonds which took place after March 21, 1898, the date on which chapter 88, Laws of 1898, took effect, is taxable, although the bonds were issued under an act which provided that they should be exempt from taxation by the United States and from taxation in any form by or under State, municipal, or local authority." Matter of Plummer, 30 Misc. Rep. 19, 62 N. Y. S. 1024; affd., 47 App. Div. 625, 62 N. Y. S. 1145, 161 N. Y. 631; Plummer v. Coler, 178 U. S. 115.

70. Stock Pledged as Collateral to Loan Redeemed Is Taxable.

A pledge redeemed by the pledgor's executor is taxable against the pledgor's estate.

Where the executor of a resident decedent who pledged her stock in a domestic bank as collateral to a loan made to her by said bank, pays off the loan and redeems the stock, it becomes presently taxable as a part of her estate because the pledgee no longer has any interest in it which requires protection. Matter of Hurcomb, 36 Misc. Rep. 755, 74 N. Y. S. 475.

71. Legacy Absolute in Terms - Although Shown by Extrinsic Proof to Be Imposed with a Trust.

An executor who, under the will, takes a third of the residuary estate absolutely unincumbered by any trust imposed by the will itself, is not relieved from payment of the inheritance tax imposed by the Collateral Inheritance Tax Law (chapter 713, Laws of 1887) by the fact that in an action brought to obtain a judicial construction of the will, it is held as a result of extrinsic evidence that he took the legacy imposed with a trust in favor of the testatrix's brother. Mat

Law Phrases Unnecessary.

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ter of Edson, 38 App. Div. 19, 56 N. Y. S. 409; affd., 159 N. Y. 568.

72. When a Taxable Bequest Will Be Deemed Created-Law Phrases Unnecessary.

66

To constitute a bequest it is not essential that a testator use the word give" or the word "bequeath " or any word of similar significance. Matter of Thompson, 5 Dem. 393.

The testator by the first clause of his will provided in part as follows: "I hereby direct my executors hereinafter named, to withdraw one-half of each of the claims and demands which have been presented by me or on my behalf, to the executrix of the will of my deceased brother, and not to collect any more than one-half of the same from said executrix, and I hereby forgive one-half of said claims and demands against my said brother's estate." Held, that the expression "I forgive one-half," etc., amounts to a bequest of that half, and does not relieve any part of the whole sum from taxation, but has the effect of making the tax on that one-half assessable to the executrix as such and not to her as an individual. Matter of Wood, 40 Misc. Rep. 155, 81 N. Y. S. 511.

73. Debts Owing by Resident to Nonresident Decedent.

Debts owing by a resident to a nonresident decedent constitute property within this State within the meaning of the statute and are taxable. Matter of Daly, 100 App. Div. 373-382; affd., 182 N. Y. 524, no opinion. 74. Deposit with Trust Company Although Certificates Therefor Are Held Without This State.

Where the decedent had deposited sums of money with two trust companies in New York city and re