§ 1019. Bond to Secure Deferred Payments.

Sec. 7720. Any beneficiary of any property chargeable with a tax under this act, and any executors, administrators and trustees thereof, may elect, within eighteen months from the date of the transfer thereof as herein provided, not to pay such tax until the person or persons beneficially interested · therein shall come into the actual possession or enjoyment thereof. The person or persons so electing shall give a bond to the state in a penalty of three times the amount of any such tax, with such securities as the county court of the proper county may approve, conditioned for the payment of such tax and interest thereon at such time or period as the person or persons beneficially interested therein may come into the actual possession or enjoyment of such property, which bond shall be filed in the county court. Such bond must be executed and filed and a full return of such property upon oath made to the county court within one year from the date of such transfer thereof as herein provided, and such bond must be renewed when ordered by the court. (Laws 1907-08, p. 739; Comp. Laws 1909, p. 1552.)

§ 1020. Bequest to Executor in Lieu of Compensation.

Sec. 7721. If a testator bequeaths property to one or more executors or trustees in lieu of their commissions or allowances, or makes them his legatees to any amount exceeding the commission or allowance prescribed by law for an executor or trustee, the excess in value of the property so bequeathed, above the amount of commissions or allowances prescribed by law in similar cases, shall be taxable by this act. (Laws 1907-08, p. 739; Comp. Laws 1909, p. 1553.)

§ 1021. Transfer of Stock or Obligations by Foreign Executor-Notice. Sec. 7722. If a foreign executor, administrator or trustee shall assign or transfer any stock or obligations in this state standing in the name of a decedent or in trust for a decedent, liable to any such tax, the tax shall be paid to the treasurer of the proper county or the state auditor on the transfer thereof. No safe deposit company, bank or other institution, person or persons holding securities or assets of a decedent, shall deliver or transfer the same to the executors, administrators, or legal representatives of said decedent, or upon their order or request unless notice of the time and place of such intended transfer be served upon the state auditor at least ten days prior to the said transfer; nor shall any such safe deposit company, bank or other institution, person or persons deliver or transfer any securities or assets of the estate of a nonresident decedent without retaining a sufficient portion or amount thereof to pay any tax which may thereafter be assessed on account of the transfer of such securities or assets under the provisions of this act, unless the state auditor consents thereto in writing; and it shall be lawful for the said county treasurer or state auditor personally or by representative to examine said securities or assets at the time of such delivery or transfer. Failure to serve such notice or to allow such examination or to retain a sufficient portion or amount to pay such tax as herein provided, shall render said safe deposit company, trust company, bank or other institution, person or persons, liable to the payment of the tax due upon said securities or assets in pursu

ance of the provisions of this act. (Laws 1907-08, p. 739; Comp. Laws 1909, p. 1553.)

§ 1022. Jurisdiction of County Court.

Sec. 7723. The county court of every county of the state having jurisdiction to grant letters testamentary or of administration upon the estate of a decedent whose property is chargeable with any tax under this act, or to appoint a trustee of such estate or any part thereof, or to give ancillary letters thereon, shall have jurisdiction to hear and determine all questions arising under the provisions of this act, and to do any act in relation thereto authorized by law to be done by a county court in other matters or proceedings coming within its probate jurisdiction. Every petition for ancillary letters testamentary or ancillary letters of administration, made in pursuance of the laws governing probate practice of a person to be cited as therein prescribed, and a true and correct statement of all the decedent's property in this state, and the value thereof; and upon presentation thereof the county court shall issue a citation directed to such county treasurer, and upon the return of the citation, the county court shall determine the amount of the tax which may be or become due under the provision of this act, and his decree awarding the letters may contain any provisions for the payment of such tax or the giving of security therefor, which might be made by such county court if the county treasurer were a creditor of deceased. (Laws 1907-08, p. 740; Comp. Laws

1909, p. 1553.)

§ 1023. Appointment of Appraisers and Valuation of Property. Sec. 7724. The county court upon the application of any interested party, including the state auditor, county treasurer, or upon his own motion, shall as often as, and whenever occasion may require, appoint a competent person as appraiser to fix the fair market value at the time of transfer thereof of the property of persons whose estates shall be subject to the payment of any tax imposed by this act.

Whenever a transfer of property is made upon which there is, or in any contingency there may be, a tax imposed, such property shall be appraised at its clear market value immediately upon the transfer or as soon thereafter as practicable. The value of every future or limited estate, income, interest or annuity dependent upon life or lives in being, shall be determined by the rule, method and standard of mortality and value employed by the commissioner of insurance in ascertaining the value of policies of life insurance, and annuities for the determination of liabilities of life insurance companies, except that the rate of interest for making such computation shall be five per centum per annum.

In estimating the value of any estate, or interest in property to the beneficial enjoyment or possession whereof there are persons or corporations presently entitled thereto, no allowance shall be made in respect of any contingent encumbrance thereon, nor in respect of any contingency upon the happening of which the estate or property or some part thereof, or interest therein, might be abridged, defeated or diminished; provided, however, that in the event of such encumbrance taking effect as an actual burden upon the

interest of the beneficiary, or in the event of the abridgment, defeat or diminution of such estate or property or interest therein as aforesaid, a return shall be made to the person properly entitled thereto of a proportionate amount of such tax in respect to the amount or value of the encumbrance when taking effect, or so much as will reduce the same to the amount which would have been assessed in respect of the actual duration or extent of the estate or interest enjoyed. Such return of tax shall be made in the manner provided in section 7719.

Where any property shall after the passage of this act be transferred subject to any charge, estate, or interest determinable by the death of any person, or at any period ascertainable only by reference to death, the increase of benefit accruing to any person or corporation upon extinction or determination of such charge, estate or interest, shall be deemed a transfer of property taxable under the provisions of this act in the same manner as though the person or corporation beneficially entitled thereto had then acquired such increase of benefit from the person from whom the title to their respective estates or interests is derived.

When property is transferred in trust or otherwise, and the rights, interests or estates of the transferees are dependent upon contingencies or conditions whereby they may be wholly or in part created, defeated, extended or abridged, a tax shall be imposed upon such transfer at the highest rate which, on the happening of any of the said contingencies or conditions, would be possible under the provisions of this act, and such tax so imposed shall be due and payable forthwith out of the property transferred, provided, however, that on the happening of any contingency whereby the said property or any part thereof is transferred to a person or corporation exempt from taxation under the provisions of this act or to a person taxable at a less rate than the rate imposed and paid, such person or corporation shall be entitled to a return of so much of the tax imposed and paid as is the difference between the amount paid and the amount which said person or corporation should pay under the provisions of this act with legal interest from the time of payment. Such return of overpayment shall be made in the manner provided by section 7719. Estates in expectancy which are contingent or defeasible and in which proceedings for the determination of the tax have not been taken or where the taxation thereof has been held in abeyance, shall be appraised at their full, undiminished, clear value when the persons entitled thereto shall come into the beneficial enjoyment or possession thereof without diminution for or on account of any valuation theretofore made of the particular estates for purposes of taxation upon which said estates in expectancy may have been limited.

Where an estate for life or for years can be devested by the act or omission of the legatee or devisee, it shall be taxed as if there were no possibility of such devesting. (Laws 1907-08, p. 741; Comp. Laws 1909, p. 1553.)

§ 1024. Proceedings by Appraiser--Compensation.

Sec. 7725. Every such appraiser shall forthwith give notice by mail to all persons known to have claim or interest in the property to be appraised, including the county treasurer, and to such persons as the county court may by order direct, of the time and place when he will appraise such property.

He shall, at such time and place, appraise the same at its fair market value, as herein prescribed, and for that purpose the said appraiser is authorized to issue subpoenas and to compel the attendance of witnesses before him and to take the evidence of such witnesses under oath concerning such property and the value thereof; and he shall make report thereof and of such value in writing, to the said county court, together with the depositions of the witnesses examined, and such other facts in relation thereto and to the said matters as the said county court may order or require. Every appraiser shall be paid on the certificate of the county court at the rate of two dollars per day for every day actually and necessarily employed in such appraisal, and his actual and necessary traveling expenses and the fees paid such witnesses, which fees shall be the same as those now paid to witnesses subpoenaed to attend in courts of record, by the county treasurer out of any funds he may have on his hands on account of any tax imposed under the provisions of this act. (Laws 1907–08, p. 743; Comp. Laws 1909, p. 1555.)

§ 1025. Report of Appraiser.

Sec. 7726. The report of the appraiser shall be made in duplicate, one of which duplicates shall be filed in the office of the county court and the other in the office of the state auditor. Upon filing such report in the county court, the county court shall forthwith give twenty days' notice by mail to all persons known to be interested in the estate, including the county treasurer, of the time and place of the hearing in the matter of such report and the county court from such report and other proofs relating to any such estate shall forthwith at the time so fixed, determine the cash value of such estate and the amount of tax to which the same is liable, or the county court without appointing an appraiser upon giving twenty days' notice by mail to all persons known to be interested in the estate including the county treasurer, of the time and place of hearing, may at the time so fixed hear evidence and determine the cash value of such estate and the amount of tax to which the same is liable. If the residence or postoffice address of any person interested in any estate is unknown to the executor, administrator, or trustee, notice of the hearing in the matters of the report of the appraisers or notice that the county court without appointing an appraiser will determine the cash value of an estate, shall be given to all such persons by publication of such notice not less than three successive weeks prior to the time fixed for such hearing or determination in such newspaper published within the county as the court shall direct. (Laws 1907-08, p. 743; Comp. Laws 1909, p. 1555.)

§ 1026. Duty of Insurance Commissioner.

Sec. 7727. The commissioner of insurance shall on application of any county court determine the value of any such future or contingent estates, income, or interests therein, limited, contingent, dependent or determinable upon the life or lives of the person or persons in being upon the facts contained in such appraiser's report or upon the facts contained in the county court's finding and determination and certify the same to the county court and his certificate shall be presumptive evidence that the method of compu

tation adopted therein is correct. (Laws 1907-08, p. 744; Comp. Laws 1909, p. 1555.)

Sec. 7728. The state auditor or any person dissatisfied with the appraisement or assessment and determination of such tax, may apply for a rehearing thereof, before the county court, within sixty days from the fixing, assessing and determination of the tax by the county court as herein provided, on filing a written notice which shall state the grounds of the application for a rehearing. The rehearing shall be upon the records, proceedings, and proofs had and taken on the hearings as herein provided and a new trial shall not be had or granted unless specially ordered by the county court. (Laws 1907-08, p. 744; Comp. Laws 1909, p. 1555.)

§ 1028. Guardian of Person Under Disability-Reappraisement.

Sec. 7729. The county court shall immediately give notice by mail upon the determination by him as to the value of any estate which is taxable under this act and of the tax to which it is liable to all parties known to be interested therein including the state auditor. If however it appears at this or any stage of the proceedings that any of such parties known to be interested in the estate is an infant or an incompetent, the county court shall if the interest of such infant or incompetent is presently involved, and is adverse to that of the other persons interested therein appoint a special guardian of such infant, but nothing in this provision shall affect the right of an infant over fourteen years of age or of anyone on behalf of an infant under fourteen years of age, to nominate and apply for the appointment of a special guardian of such infant at any stage of the proceedings.

Within one year after the entry of an order or decree of the county court determining the value of an estate and assessing the tax thereon, the state auditor may if he believes that such appraisal, assessment, or determination has been fraudulently, collusively or erroneously made, make application to the judge of the district court in which the said estate is administered on for a reappraisal thereof. The district judge to whom such application is made may thereupon appoint a competent person to reappraise such estate. Such appraiser shall possess the powers, be subject to the duties, shall give the notice, and receive the compensation provided by sections 7724 and 7725. Such compensation shall be payable by the county treasurer out of any funds he may have on account of any tax imposed under the provisions of this act upon the certificate of the district judge appointing. The report of such appraiser shall be filed in the district court for which he was appointed and thereafter the same proceedings shall be taken and had by and before such district court as herein provided to be taken and had by and before the county court.

The determination and assessment of such district court shall supersede the determination and assessment of the county court and shall be filed by such district court in the office of the state auditor and a certified copy thereof transmitted to the county court of the proper county. (Laws 1907-08, p. 744; Comp. Laws 1909, p. 1556.)