though it has been the property of the donee and not of the creator of the power.

The other states and Federal Act leave transfers by powers of appointment to judicial construction.

e. LIFE ESTATES.

All the statutes provide for the immediate valuation of life estates and remainders and under the statutes or the practice of the courts this is universally done by the use of the various mortality tables at the prescribed rate of interest. As to these, the states widely differ and the whole subject is reviewed ante under Life Estates and Remainders.

f. REMAINDERS.

The states differ as to whether the tax on the remainder shall be collected at once or postponed until the beneficiary gets the property. In case of contingent remainders where the amount of the property itself is uncertain, as in case of life estates with power to invade the principal, the taxation of the remainder is usually suspended unless the tax is compounded by a settlement agreement which nearly all the statutes permit in such cases.

Eight states make the tax on all remainders due at once: Arkansas, Delaware, Georgia, Maryland, Maine, New Hampshire, Ohio and West Virginia, though the practice is to suspend the tax where the amount is uncertain.

These states postpone contingent remainder taxation until the beneficiary becomes entitled to the property, usually providing that security must be given in case of personal property: Michigan, Missouri, New Jersey, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Utah and Washington.

The usual practice is to give the remainderman of personal property an election not to pay the tax until he

receives the property provided he files a bond to pay the tax with interest with an inventory of the property and renews the bond every five (5) years. This is the law in Arizona, California, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Massachusetts, Michigan Montana, Missouri, Nevada, New Jersey, Oklahoma, Oregon, Pennsylvania, Rhode Island, Wisconsin, Wyoming. Some of these states extend this to real estate, others let the tax remain a lien during the life tenure.

In case of contingent remainders these states assess the tax at the highest possible rate with provision for a refund if a lower rate turns out to be due: California, Colorado, Idaho, Illinois, Indiana, New York, Minnesota, and South Dakota. The provision has been the source of much litigation.

Rhode Island and Wisconsin on the other hand tax the contingent remainder at the lowest possible rate and require adjustment if a higher rate is ultimately due.

Connecticut makes the contingent remainder rate the same as that of the life tenant with provision for ultimate adjustment of any difference on the falling in of the remainder.

In all the states the general principle is the same, the variations being as to when the tax falls due and the rate at which it is imposed.

g. EXECUTORS AND THEIR DUTIES.

All the statutes require the executor or administrator to file a sworn inventory which is made the basis for the appraisal of the estate and the assessment of the tax. They all hold him personally liable for the tax. They all require him to deduct the tax from a money legacy or collect it from the beneficiary, if in property, and forbid him to deliver it until the tax is paid. They all make the tax a lien and provide that the property, or so much

thereof as is necessary, may be sold to pay the tax as in case of debts. They all require him to pay the tax to the proper official and secure a receipt which must be produced as a voucher on final accounting. They all provide that no final decree settling his accounts may be granted until it is shown that the tax has been paid or that none is due. Bequests to executors in lieu of commissions are universally taxed where they exceed a reasonable compensation for services.

h. APPRAISAL.

All of the statutes use the machinery of the probate courts for the collection of the tax and most of them require the judge or surrogate having jurisdiction to grant letters testamentary or of administration to assess it on appraisal. Some states permit the sworn inventory to stand as the appraisal unless the treasurer, comptroller or tax commissioner is dissatisfied; but provide for the appointment of an appraiser if there is any question in dispute who proceeds, upon due notice to all parties interested, to appraise the estate at its fair market value, usually the value at the death of the decedent. From the appraisal so made there is always an appeal to the probate court which may order a reappraisal or assess the tax and from such decree an appeal lies in the same manner as from other decrees unless special provisions are made as to time, etc. In all these features the statutes are practically identical.

Provisions are also usually made for motions to exempt an estate which is obviously not taxable without the formality of an appraisal.

i. VALUATION.

The time when the tax falls due is the time when the value must be fixed but losses in process of administration

have so often occurred and beneficiaries so frequently have been assessed upon the transfer for the property they never in fact have received that the recent statutes enacted by Connecticut, Rhode Island and the Federal government allow a deduction for losses during administration except those due merely to the rise and fall in the price of stocks. This is a relief which the courts cannot give and will doubtless be generally adopted in other states.

j. INTEREST, DISCOUNT AND PENALTY.

Following is a synopsis of the provisions of the statutes with regard to rates of interest and discount:

Federal tax-due one year after death. If not paid within 90 days after that 10 per cent. interest from date of death which may be reduced to 6 per cent. in case of unavoidable delay. If paid before due discount of 5 per cent. per annum calculated from date of payment to date when due.

Arizona.- Due at death, after 8 months interest at 8 per cent. from death, in case of unavoidable delay, 6 per cent. If paid within 8 months, 5 per cent. discount.

Arkansas.- Due at death, interest at 6 per cent. after 6 months, after 12 months 10 per cent. penalty in addition to interest, except in case of unavoidable delay when penalty is remitted - no discount.

California.- Due at death, no interest until 18 months, after that 10 per cent. from date of death, in case of unavoidable delay may be reduced to 7 per cent. If paid within 6 months 5 per cent. discount.

Colorado.- Due at death, after one year interest at 10 per cent. from date of death, discount of 5 per cent. if paid within 6 months.

Connecticut.- Due 14 months after death; after that interest at 9 per cent. but court may extend time of payment. No discount.

Delaware.- Taxes payable within 13 months. No provision for interest. Legal rate is 6 per cent. No discount. Georgia.- Due at death, no interest until after 12 months then from date of death. No rate specified. Legal rate 7 per cent.

Hawaii. Due at death. No interest for 18 months; after that 10 per cent. from date of death which may be reduced to 7 per cent. in case of unavoidable delay. Discount of 5 per cent. if paid within one year.

Idaho.- Due at death. No interest until after one year; then 10 per cent. reduced to 6 per cent. in case of unavoidable delay. Discount of 5 per cent. if paid within six months.

Illinois.- Taxes due at death and interest at 6 per cent. charged from that time unless paid within 6 months when no interest charged and a discount of 5 per cent. allowed.

Indiana.- Tax due at death. No interest for 18 months; after that 10 per cent. from date of death, discount of 15 per cent. if paid within one year.

Iowa. At death, no interest for 18 months; after that 8 per cent. from date of death.

Kansas.- One year from death except gifts in contemplation of death on which tax accrues at date of gift. No provision as to interest. Legal rate is 6 per cent.

Kentucky. Due at death. No interest for 18 months, after that 10 per cent. from date of death; may be reduced to 6 per cent. in case of unavoidable delay. Discount of 5 per cent. if paid within 9 months.

Louisiana.- Due 6 months after death from which time 2 per cent. a month until paid but court may remit interest in case of litigation or unavoidable delay. No discount.

Maine.- Due two years after death, after that 6 per cent. interest. No discount.

Maryland.- No interest until after 12 months, then 6 per cent. from date of death. No discount.