§ 974. Deduction of Debts and Costs.

Sec. 8321. The term "debts" shall include, in addition to debts owing by decedent at the time of his death, the local or state taxes due from the estate prior to his death, and a reasonable sum for funeral expenses, court costs, including the costs of appraisement made for the purpose of assessing the collateral succession or inheritance tax, the statutory fees of executors, administrators or trustees, and no other sum; but said debts shall not be deducted unless the same are approved and allowed, within fifteen months from the death of decedent, as established claims against the estate, unless otherwise ordered by the judge or court of the proper county. (Laws 1903, c. 171; Rev. Code 1905, sec. 8321.)

§ 975. Property Subject to Tax.

Sec. 8322. Except as to property passing to persons, corporations or societies exempted by section 8320 from the collateral succession or inheritance tax, and real property located outside of the state passing in fee from the decedent owner, the tax imposed under the provisions of this chapter shall be assessed and be collected from, property of every kind, which, at the death of the decedent owner is subject to or thereafter, for the purpose of distribution, is brought into this state for distribution purposes, or which was owned by any decedent domiciled within the state at the time of the death of such decedent, even though the property of said decedent so domiciled was situated outside of the state. (Laws 1903, c. 171; Rev. Code 1905, sec. 8322.)

§ 976. Meaning of Collateral Heirs-Pending Estates.

Sec. 8323. In the construction of this chapter the words "collateral heirs" shall be held to mean all persons who are not excepted from the provisions of the collateral succession or inheritance tax under the provisions of this chapter, except section 8322, shall apply to all pending estates which are not closed, and the property subjected by this chapter to the said tax is liable to the provisions herein contained, as to the amount and lien hereof, and the manner of enforcement and collection thereof, except as herein specifically provided otherwise. (Laws 1903, c. 171; Rev. Code 1905, sec. 8323.)

§ 977. Property Belonging to Foreign Estates Liable to Tax in This State. Sec. 8324. Whenever any property belonging to a foreign estate, which estate, in whole or in part, is liable to pay a collateral succession or inheritance tax in this state, and said tax shall be assessed upon the market value of said property remaining after the payment of such debts and expenses as are chargeable to the property under the laws of this state; in the event that the executor, administrator or trustee of such foreign estate files with the clerk of the court having ancillary jurisdiction, and with the state treasurer, duly certified statements exhibiting the true market value of the entire estate of the decedent owner, and the indebtedness for which the said estate has been adjudged liable, which statement shall be duly attested by the judge of the court having original jurisdiction, the beneficiaries of said estate shall then be entitled to have deducted such proportion of the said indebt

edness of the decedent from the value of the property as the value of the property within this state bears to the value of the entire estate. (Laws 1903, c. 171; Rev. Code 1905, sec. 8324.)

§ 978. Property of Foreign Estate in Part Exempt in This State.

Sec. 8325. Whenever any property, real or personal, within this state belongs to a foreign estate, and said foreign estate is in part exempt from the collateral succession or inheritance tax, and in part subject to said collateral succession or inheritance tax, and it is within the authority or discretion of the foreign executor, administrator or trustee administering the estate to dispose of the property, not specifically devised to direct heirs or devisees in the payment of the debts owing by the decedent at the time of his death, or in the satisfaction of legacies, devises or trusts given to direct and collateral legatees or devisees, or in payment of the distributive shares of any direct and collateral heirs, then the property within the jurisdiction of this state belonging to such foreign estate, shall be subject to the collateral succession or inheritance tax imposed under the provisions hereof, and the tax due thereon shall be assessed as provided in section 8324, and with the same proviso respecting the deduction of the proportionate share of the indebtedness, as herein provided. (Laws 1903, c. 171; Rev. Code 1905, sec. 8325.)

§ 979. Inventory to be Filed by Executor-Lien of Tax.

Sec. 8326. It shall be the duty of the executor, administrator or trustee, immediately upon his appointment, to make and file a separate inventory, any will to the contrary notwithstanding, of all the real estate of the decedent liable to such tax, and to cause the lien of the same to be entered upon the lien book in the office of the clerk of the court in each county where each particular part of said real estate is situated, and no conveyance of said estate or interest therein, which is subject to such tax before or after the entering of said lien, shall discharge the estate so conveyed from the operation thereof. (Laws 1903, c. 171; Rev. Code 1905, sec. 8226.)

§ 980. Appraisement of Property.

Sec. 8327. All the real estate of the decedent subject to such tax shall, except as hereinafter provided, be appraised within thirty days next after the appointment of an executor, administrator or trustee, and the tax thereon, calculated upon the appraised value after deducting debts for which the estate is liable shall be paid by the person entitled to said estate within fifteen months from the approval by the court of such appraisement, unless a longer period is fixed by the court, and in default thereof, the court shall order the same, or so much thereof as may be necessary to pay such tax, to be sold. (Laws 1903, c. 171; Rev. Code 1905, sec. 8327.)

§ 981. Estate for Life or for Years and Remainders.

Sec. 8328. When any person whose estate, over and above the amount of his just debts, exceeds the sum of one thousand dollars shall bequeath or devise any real property to or for the use of the father, mother, husband,

wife, lineal descendant, adopted child, or lineal descendant of such child, during life or for a term of years, and the remainder to a collateral heir or to a stranger to the blood, the court, upon the determination of such estate for life or years, shall upon its own motion or upon the application of the state treasurer, cause such estate to be appraised at its then actual market value, from which shall be deducted the value of any improvements thereon, or betterments thereto, if any, made by the remainderman, during the time of the prior estate, to be ascertained and determined by the appraisers, and the tax on the remainder shall be paid by such remainderman within sixty days from the approval by the court of the report of the appraisers. If such tax is not paid within said time, the court shall then order said real estate, or so much thereof as shall be necessary to pay such tax, to be sold. (Laws 1903, c. 171; Rev. Code 1905, sec. 8328.)

§ 982. Estate for Life or for Years and Remainders.

Sec. 8329. Whenever any real estate of a decedent shall be subject to such tax, and there be a life estate or interest for a term of years given to a party other than named in the preceding section, and the remainder to a collateral heir or stranger to the blood, the court shall direct the interest of the life estate or term of years to be appraised at the actual market value thereof, and upon the approval of such appraisement by the court, the party entitled to such life estate, or term of years, shall within sixty days thereafter pay such tax, and in default thereof the court shall order such interest in said estate, or so much thereof as shall be necessary to pay such tax, to be sold. Upon the determination of such life estate or term of years, the same provision shall apply as to the ascertainment of the amount of the tax and the collection of the same on the real estate in remainder as in like cases is provided in the preceding section. Whenever any personal estate of a decedent shall be subject to such tax, and there be a life estate or interest for a term of years given to a party other than named in the preceding section, and the remainder to a collateral heir or stranger to the blood, the court shall inquire into and determine the value of the life estate or interest for a term of years, and order and direct the amount of the tax thereon to be paid by the prior estate and that to be paid by the remainderman, each of whom shall pay their proportion of such tax within sixty days from such determination, unless a longer period is fixed by the court, and in default thereof the executor, administrator or trustee shall pay the same out of said property, and hold the same from distribution, and invest it at interest under the order of the court until said tax is paid, or until the interest on the same equals the amount of such tax, which shall thereupon be paid. (Laws 1903, c. 171; Rev. Code 1905, sec. 8329.)

§ 983. Bequest to Executor in Lieu of Compensation.

Sec. 8330. Whenever a decedent appoints one or more executors or trustees, and in lieu of their allowance or commission, makes a bequest or devise of property to them which would otherwise be liable to said tax, or appoints them his residuary legatees, and said bequests, devises or residuary legacies, exceed what would be a reasonable compensation for their services, such

excess shall be liable to such tax, and the court having jurisdiction of their accounts, upon its own motion or on the application of the state treasurer, shall fix such compensation. (Laws 1903, c. 171; Rev. Code 1905, sec. 8330.)

§ 984. Legacies Charged upon Real Estate.

Sec. 8331. Whenever any legacies subject to said tax are charged upon or payable out of any real estate, the heir or devisee, before paying the same, shall deduct said tax therefrom and pay it to the executor, administrator, trustee or state treasurer, and the same shall remain a charge and be a lien upon said real estate until it is paid; and payment thereof shall be enforced by the executor, administrator, trustee or state treasurer in his name of office, in the same manner as the payment of the legacy itself could be enforced. (Laws 1903, c. 171; Rev. Code 1905, sec. 8331.)

§ 985. Collection of Tax by Executor.

Sec. 8332. Every executor, administrator or trustee having in charge or trust any property subject to said tax, and which is made payable to him, shall deduct the tax therefrom, or shall collect the tax thereon from the legatee, or person entitled to said property, and he shall not deliver a specific legacy or property subject to said tax to any person until he has collected the tax thereon. (Laws 1903, c. 171; Rev. Code 1905, sec. 8332.)

§ 986. Time for Payment of Tax-Interest.

Sec. 8333. All taxes imposed by the provisions of this chapter shall be payable to the state treasurer, and those which are made payable by executors, administrators or trustees shall be paid within fifteen months from the death of the testator or intestate, or within fifteen months from assuming of the trust by such trustee, unless a longer period is fixed by the court. All taxes not paid within the time prescribed in this chapter shall draw interest at the rate of eight per centum per annum until paid. (Laws 1903, c. 171; Rev. Code 1905, sec. 8333.)

§ 987. Appraisement of Real Estate.

Sec. 8334. All appraisements of real estate subject to such tax shall be made and filed in the manner provided for appraisement of personal property. When such real estate is situated in another county the same appraisers may serve, or others may be appointed. (Laws 1903, c. 171; Rev. Code 1905, sec. 8334.)

§ 988. Payment by Executor to State Treasurer.

Sec. 8335. It is hereby made the duty of all executors, administrators or trustees charged with the management or settlement of any estate subject to the tax provided for in this chapter, to collect and pay to the state treasurer the amount of the tax due frem any devisee, grantee or donee of the decedent, except in cases falling under the provisions of sections 8329 and 8330 hereof, in which cases the state treasurer shall collect the same. Applications may be made to the district court by such executor, administrator, trustee or state treasurer to sell the real estate subject to said tax

in an equitable action, or, if made to the court having charge of the settlement of said estate, the proceedings shall conform as nearly as may be to those for the sale of real estate of a decedent for the settlement of his debts.. (Laws 1903, c. 171; Rev. Code 1905, sec. 8335.)

§ 989. Filing Description of Real Estate in Case of Remainder.

Sec. 8336. Whenever any real estate of a decedent shall so pass, either in possession and enjoyment or in remainder as to the subject of such tax, the executor, administrator or trustee, within six months after he has assumed the duties of his trust, shall file with the state treasurer a description of such real estate, giving the name of the county where the same is situated, the name of the decedent, the name of the person or persons to whom it so passes, whether the same passes in possession and enjoyment in fee, for life or for a term of years, naming the term of years, and if a prior estate is created, he shall give the name of the remainderman. (Laws 1903, c. 171; Rev. Code 1905, sec. 8336.)

§ 990. Filing Appraisement With State Treasurer.

Sec. 8337. As soon as any such real estate is appraised, it shall be the duty of the executor, administrator or trustee if he has not been discharged, and if he has finally been discharged, then it shall be the duty of the clerk, to file with the state treasurer a copy of such appraisement, stating also the amount of tax to be paid and within what time ordered to be paid. (Laws 1903, c. 171; Rev. Code 1905, sec. 8337.)

§ 991. Account of Executor not Allowed Until Taxes Paid.

Sec. 8338. No final settlement of the account of any executor, administrator or trustee shall be accepted or allowed unless it shall show, and the court shall find, that taxes imposed by the provisions of this chapter upon any property or interest therein belonging to the estate to be paid by such executors, administrators or trustees, and to be settled by said account, shall have been paid, and the receipt of the state treasurer for such tax shall be the proper voucher for such payment. (Laws 1903, c. 171; Rev. Code 1905, Бес. 8336.)

§ 992. Jurisdiction of District Court.

Sec. 8339. The district court having either principal or ancillary jurisdiction of the settlement of the estate of the decedent shall have jurisdiction to hear and determine all questions in relation to said tax that may arise affecting any devise, legacy or inheritance, or any grant or gift, under this chapter, subject to appeal as in other cases, and the state treasurer shall in his name of office represent the interests of the state in any such proceeding. (Laws 1903, c. 171; Rev. Code 1905, sec. 8339.)

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