1893; and the other, passed in 1894, and recently declared unconstitutional, imposing a graduated directed inheritance tax of 1 to 5 per cent. upon property passing to lineals and others." 58

(1) Exemptions under Ohio Collateral Inheritance Act of 1893.

(1) Father, mother, husband, wife.

(2) Brother, sister.

(3) Niece, nephew.

(4) Lineal descendants.

(5) Adopted child, or

(6) Person recognized as adopted child."

(7) Lineal descendant thereof.

(8) Lineal descendant of adopted child.

(9) Wife or widow of a son.

(10) Husband of daughter of decedent.

(11) $200 from appraised value.

(12) Bequests to executors, etc., in lieu of commissions. Excess taxable.

(2) Exemptions under Direct Inheritance Act of 1894.

By the Ohio act of 1894,6° the direct inheritance tax is imposed upon property passing to the persons enumerated above, class 1 to 10, inclusive,-as follows:

57 See Appendix, VI. a. Constitutionality of these acts discussed in Ohio Leg. News, Jan. 12, 1895, p. 183; Id. Act Jan. 27, 1893, p. 17. See chapter 2, § 18.

58 See Appendix, VI. a., Laws 1894, p. 169, § 1. This act has been declared unconstitutional, as violating the provisions of the state constitution requiring equality and uniformity. See State v. Ferris, 9 Ohio Cir. Ct. R. 299, affirmed 23 Wkly. Law Bul. (Ohio) July 1, 1895, 349, 352. Opinion will be published in N. E. Rep. as soon as handed down.

59 Under section 4182, Rev. St. Ohio.

60 See Appendix, VI., declared unconstitutional in State v. Ferris, supra, as violating the rule of uniformity and equality, under section 2, art. 12, Const. Ohio, and article 14, § 1, Const. U. S.

When the value of the entire property of such decedent exceeds the sum of

20,000 and does not exceed $ 50,000..

1 %

66

(5) Children.

(6) Brothers and sisters.

(7) Sons-in-law.

(8) Daughters-in-law.

(9) Grandchildren.

(0) Illinois, 62

There would seem to be no exemptions allowed under this statute, except

(1) Estates which may be valued at less than $500.0

(2) Estates which may be valued at a less sum than $20,000, where the estate passes to father, mother, husband, wife, child, brother, sister, wife or widow of the son, or the husband of the daughter, or any child or children adopted as such in conformity with the laws of the state of Illinois, or to any person to whom deceased, for not less than 10 years prior to death, stood in the acknowledged

61 Laws 1891, c. 25; Laws 1893, p. 347.

62 See statute, Appendix, X., taken from Laws of Illinois for 1895, by James B. Bradwell, Chicago Leg. News, 1895, p. 213. See Laws Ill. 1895, Reg. & Ex. Sess. p. 301.

63 Id. § 1.

relation of a parent, or to any lineal descendant born in lawful wedlock.

(The tax is to be levied in the above cases, only upon the excess of $20,000 received by each person, at the rate of 1 per cent.)

(3) Estates of $2,000 are exempt, but the excess of that amount is taxable where the property passes to or for the use of any uncle, aunt, niece, nephew, or any lineal descendant of the same, where the tax is 2 per cent. upon such ex

cess.

(4) In all other cases the rate is as follows on each and every $100 of the clear market value of all property, and the same rate for any less amount: On all estates of $10,000 and less, 3 per cent.; on all estates of over $10,000, and not exceeding $20,000, 4 per cent.; on all estates over $20,000, and not exceeding $50,000, 5 per cent.; and on all estates over $50,000, 6 per cent."

(5) Life estates or estates for a term of years in some cases also seem to be exempt 65 where the property shall be bequeathed to mother, father, husband, wife, brother, and sister, the widow of the son, or a lineal descendant during the life or for a term of years, or remainder to the collateral heirs of decedent, or to stranger in blood, or to body politic or corporate at their decease, or on the expiration of such term. "The said life estate or estates for a term of years shall not be subject to any tax, and the property so passing shall be appraised immediately after the death;

and after deducting therefrom the value of said life estate, or term of years," the tax transcribed by the act on the remainder shall be due and payable.

64 Id. § 1.

65 Id. § 2.

(91)

(p) Minnesota.

By constitutional amendment passed in 1894, provision is made for an inheritance tax," but no law has yet been enacted.

§ 35. Charitable, Religious, and Other Corporations and Objects.

Under the general designation of charitable and religious corporations and objects have been included, as claiming exemptions under these acts, churches, cemeteries, almshouses, hospitals, dispensaries, orphan asylums, homes, houses of industry, colleges, public libraries, museums of art and history, societies to protect animals, benefit, insurance, and Christian associations, and legacies to priests for masses, and the like.67

In England, under the legacy duty act, legacies to charitable and religious corporations were at first taxable with the highest rate of duty.88 Subsequently they were, to a limited extent, exempted by statute."9

In order to be exempted, it was held that the legacy for charitable purposes must be expressly so given by the will itself, and not be the subject of any secret trust.70 But all such legacies seem now to be made liable to succession duty,

66 See chapter 11, § 11.

67 See Laws N. Y. 1890, c. 553, Appendix, I., and Laws 1892, c. 399, § 1; Laws 1892, c. 169,-by which the list of such institutions entitled to exemption is greatly extended.

68 In re Griffiths, 14 Mees & W. 510; Ex parte Franklin, 3 Younge & J. 544; In re Parker, 4 Hurl. & N. 666; In re Wilkinson, 1 Cromp. M. & R. 142.

69 56 Geo. III. c. 56; 5 & 6 Vict. c. 82.

70 Cullen v. Attorney General, L. R. 1 H. L. 190. But see In re Farley's Estate (Surr.) 15 N. Y. St. Rep. 727.

except in Ireland." A bequest, absolute in form, to executors, pursuant to an understanding between them and testator, by which a valid parol trust was created in favor of certain charitable corporations which are exempt from taxation, is not subject to the legacy tax.72

And where the testator bequeathed property to his executors to be disposed of as directed in a private memorandum, which directed that a portion of the property should be delivered to exempt persons, and another portion to nonexempt persons, held, that the portion going to the latter was taxable.73 Where the legatee, a church, was proved to have no existence, and another church proved itself entitled to the legacy, it was held taxable against the latter."

75

In the state of New York it has never been the general policy wholly to exempt the real or personal property of churches and colleges or charitable institutions from taxaWhere the policy of complete exemption has been adopted, it was by means of special acts applicable to particular and specified corporations; and in that state it is said there is no general act exempting the personal property of such colleges or churches," and the same policy has 71 16 & 17 Vict. c. 51, § 16; 44 Vict. c. 12, § 42; Cullen v. Attorney General, supra.

72 In re Murphy's Estate (1893) 25 N. Y. Supp. 106, 4 Misc. Rep. 230, citing In re Haven's Estate (Surr.) 2 N. Y. Supp. 639; In re Farley's Estate, supra.

73 In re Swift (Surr.) 16 N. Y. Supp. 193.

74 In re Richards, N. Y. Law J. Feb. 28, 1891.

75 Catlin v. Trustees of Trinity College, 113 N. Y. 141, 20 N. E. 864; Sherrill v. Christ Church, 121 N. Y. 701, 25 N. E. 50; In re Vassar, 127 N. Y. 8, 27 N. E. 394; In re Prime, 136 N. Y. 356, 32 N. E. 1091. 76 For general exemption statutes of New York, see page 77. supra. 77 But this policy was widely departed from by Act 1892, c. 399, §§ 1, 2; Id. c. 169; and by the prior act of 1890 (chapter 553, Appendix, I.), which seem to exempt the corporations therein named, not only from the collateral inheritance tax, but also from general taxation. The propriety of such wholesale exemption is questionable. The