or interest therein, transferred by deed, grant, bargain, gift, or sale, made in contemplation of death, or intended to take effect in possession or enjoyment after the death of the grantor or bargainor to any person or persons, or to bodies corporate or politic, in trust or otherwise, other than to or for the use of the father, mother, brother, sister, the wife or widow of a son, or husband of a daughter, or any child or children adopted as such in conformity with the laws of the state of Tennessee, husband, wife, children, and lineal descendants born in lawful wedlock of the person dying seised and possessed thereof, shall be subject to a duty or tax of five dollars, on every hundred dollars of the clear value of such estate or estates so passing, and at and after the same rate for any less amount, to be paid to the use of the state; and all owners of such estates and all executors and administrators and their sureties shall only be discharged from liability for the amount of such taxes or duties the settlement of which they may be charged with, by having paid the same over for the use of the state as hereinafter directed; but no estate which may be valued at a less sum than two hundred and fifty dollars shall be subject to this duty or tax. (Shan. Code (1906), p. 282.)

Inheritances not taxed under the present laws shall pay a tax as follows: All inheritances of five thousand dollars and over, but less than twenty thousand dollars a tax of one per centum of their value. All inheritances of twenty thousand dollars and over, a tax of one and one-fourth per centum of their value, to be collected by the county court clerk of each county.* (Acts 1909, p. 1761.)

§ 1135. Bequest to Executor in Lieu of Compensation.

Sec. 725. Where a testator names or appoints one or more executors, and makes a bequest or devise of property to them in lieu of their commissions or allowance, or appoints them his residuary legatees, and said bequests, devises, or residuary legacies exceed what would be a fair compensation for their services, such excess shall be subject to the payment of the collateral inheritance tax or duty, the rate of compensation to be fixed by the proper officers or courts having jurisdiction in the case. (Shan. Code (1906), p. 283.)

§ 1136. Estate for Years or for Life and Remainders-Time of Payment. Sec. 726. In all cases where there shall be a devise, bequest, or descent of an estate, real or personal, to collateral relatives or strangers liable to the collateral inheritance and succession tax, to take effect in possession or to come into actual enjoyment after the expiration of one or more life estates, or a period of years, the tax on such estate shall not be payable, nor interest begin to run thereon, until the person or persons liable for

*This section is a repeal, by implication, of so much of the acts of 1893 as exempted from the payment of the collateral inheritance tax the parties already named, and placed on them a burden common to all others who took from deceased persons. This section of the act of 1909 comes as a supplement to that of 1893, without so describing itself, and simply widens the collateral inheritance tax system. The two acts are in pari materia: Knox v. Emerson (Tenn.), 131 S. W. 972.

the same shall come into actual possession of such estate by the termination of the estates for life or years. (Shan. Code (1906), p. 283.)

§ 1137. Estate for Years or for Life and Remainders-Valuation.

Sec. 727. The tax shall be assessed upon the value of the estate at the time the right of possession accrues to the owner as aforesaid; but he shall have the right to pay the tax at any time prior to his coming into possession; and in such cases the tax shall be assessed on the value of the estate at the time of the payment of the tax, after deducting the value of the life estate or estates for years. (Shan. Code (1906), p. 283.)

§ 1138. Lien of Tax-Report of Personal Property and Security for Tax. Sec. 728. The tax on all real estate shall be and remain a lien on the real estate on which the same is chargeable until paid; and the owner of any personal estate subject to the tax provided by sections 724 to 756, inclusive, shall make a full report and return of the same to the clerk of the county court of the proper county within one year from the death of the decedent, and within that time enter into security for the payment of the tax to the satisfaction of such clerk; and in case of failure so to do, the tax shall be immediately payable and collectible. (Shan. Code (1906), p. 283.)

§ 1139. Interest and Discount.

Sec. 729. If the collateral inheritance tax shall be paid within three months after the death of the decedent, a discount of five per centum on the amount of the tax shall be made and allowed; and if said tax is not paid at the end of one year from the death of the decedent, at which time it shall be due, interest shall then be charged at the rate of six per centum per annum on such tax. (Shan. Code (1906), p. 284.)

§ 1140. Collection of Tax by Executor.

Sec. 730. The executor or administrator or other trustee paying any legacy or share in the distribution of any estate subject to the collateral inheritance tax, as provided by sections 724 to 756, inclusive, shall deduct therefrom at the rate of five dollars in every hundred dollars upon the whole legacy or sum paid; or, if not money, he shall demand payment of a sum, to be computed at the same rate, upon the appraised value thereof, for the use of the state; and no executor or administrator shall be compelled to pay or deliver any specific legacy or article to be distributed, subject to tax, except on the payment into his hands of a sum computed on its value, as aforesaid; and in case of neglect or refusal on the part of said legatee or distributee to pay the same, such specific legacy or article, or so much thereof as shall be necessary, shall be sold by such executor or administrator at public sale, for cash, after notice to such legatee or distributee, and after ten days' advertisement, as in case of ordinary administrator's sales, and the balance that may be left in the hands of the executor or administrator, after reserving the tax, shall be distributed to the legatee or distributee, as is or may be directed by law; and every sum

of money retained by any executor or administrator, or paid into his hands on account of any legacy or distributive share, for the use of the state, shall be paid by him without delay to the county court clerk of the county in which his accounts are being administered. (Shan. Code (1906), p. 284.)

§ 1141. Legacy for Limited Period or upon Contingency.

Sec. 731. If the legacy subject to the collateral inheritance tax be given to any person for life, or for a term of years, or for any other limited period, upon a condition or contingency, if the same be money, the tax thereon shall be retained upon the whole amount; but, if not money, application shall be made to the county court having jurisdiction of the accounts of the executors or administrators to make apportionment, if the case requires it, of the sum to be paid by such legatees, and for such further order relative thereto as equity shall require. Such application shall be made by the executor of such estate after at least five days' notice to the parties concerned. (Shan. Code (1906), p. 284.)

§ 1142. Legacy Charged upon Real Estate.

Sec. 732. Wherever a legacy subject to the tax or duty hereby provided, shall be charged upon or payable out of real estate, the heir or devisee, before paying the same, shall deduct therefrom at the rate aforesaid, and pay the amount so deducted to the executor, and the same shall remain a charge and lien upon such real estate until paid, and the payment thereof shall be enforced by decree of the county court in the same manner that liens on real estate are now enforced in the chancery courts of this state, and the clerk of the county court officially shall be the complainant in such suit. (Shan. Code (1906), p. 284.)

§ 1143. Information of Transfers to Clerk of County Court.

Sec. 733. Whenever any real estate of which any decedent may die seised shall be subject to the collateral inheritance tax, it shall be the duty of executors and administrators to give information thereof to the clerk of the county court where administration has been granted, within six months after they undertake the execution of their respective duties; or, if the fact be not known to them within that period, within one month after the same shall have come to their knowledge; and it shall be the duty of the owners of such estate, immediately upon the vesting of the estate, to give information thereof to such clerk of the court having jurisdiction of the granting of administration. (Shan. Code (1906), p. 284.)

§ 1144. Payment to Clerk of County Court-Receipts and Vouchers. Sec. 734. It shall be the duty of any executor or administrator receiving or collecting collateral inheritance tax, to pay the same to the clerk of the county court granting the administration, and where his accounts should be administered, and to take duplicate receipts from such clerk for the same, one of which shall be forwarded forthwith to the controller of the treasury, whose duty it shall be to charge the clerk receiving the money with the amount, and countersign the receipt and return it to the executor or

administrator, whereupon it shall be a proper voucher in the settlement of the estate; but in no event shall an executor or administrator be entitled to a credit in the settlement of his accounts with the county court clerk, or in the chancery court, if his accounts be there settled, unless the receipt is so countersigned by the controller. (Shan. Code (1906), p. 285.)

§ 1145. Transfer of Stock or Loans by Foreign Executor.

Sec. 735. Whenever any foreign executor or administrator or trustee shall assign or transfer any stocks or loans in this state standing in the name of the decedent, or in trust for a decedent, which shall be liable for the collateral inheritance tax, such tax shall be paid, on the transfer thereof, to the clerk of the county court where such transfer is made; other. wise the corporation or person permitting such transfer shall become liable to pay such tax. (Shan. Code (1906), p. 285.)

§ 1146. Refund of Tax in Case of Debts Proved After Distribution.

Sec. 736. Whenever debts shall be proven against the estate of a decedent after distribution of shares or legacies from which the collateral inheritance tax has been deducted, in compliance with sections 724 to 756, inclusive, and the legatee or distributee is required to refund any portion of a legacy or share, a corresponding portion of said tax shall be repaid to him by the executor or administrator if the said tax has not been paid to the clerk; and, if it has been so paid to the clerk, then it shall be repaid out of the state treasury upon the controller's warrant, to be drawn by him in favor of the person entitled thereto, upon the county clerk certifying, under his seal of office, that the same is justly due on account of the provisions of this section. (Shan. Code (1906), p. 285.)

§ 1147. Appraisers and Appraisement.

Sec. 737. It shall be the duty of the clerk of the county court in which letters testamentary or of administration are granted, to appoint an appraiser as often as and whenever occasion may require, to fix the valuation of estates which are or shall be subject to collateral inheritance tax; and it shall be the duty of such appraiser to make a fair and conscionable appraisement of such estates; and it shall further be the duty of such appraiser to assess and fix the cash value of all annuities and life estate growing out of said estates, upon which annuities and life estates the collateral inheritance tax shall be immediately payable, out of the estate, at the rate of such valuation, but shall bear no interest till the lapse of twelve months from the death of the decedent; and, in fixing the value of such annuities and life estate, the computation shall be made by the Carlyle Life Tables, whenever the use of life tables is necessary or applicable. Said appraisements shall be reduced to writing, in the nature of a report, and shall be, by the appraiser, filed with the clerk appointing him; and any interested person not satisfied with said appraisement shall have the right, at any time within thirty days after such appraisement is filed with the clerk, to file exceptions thereto, in writing, on giving security to pay all costs, together with whatever tax shall be fixed by the county court,

and thereupon, to have the county court to hear said exceptions; and, upon such exceptions being filed, the county court shall have jurisdiction to determine all questions of valuation, and of the liability of the appraised estate for such tax, subject to the right of appeal to the circuit court (or court of like jurisdiction) as in other cases. If an appeal should be prosecuted to the circuit court, such cause shall there be heard de novo. Code (1906), p. 285.)

(Shan.

§ 1148. Appraiser Receiving More Than Regular Fees-Penalty. Sec. 738. It shall be a misdemeanor in any appraiser appointed by the county court clerk to make any appraisement in behalf of the state, to take any fee or reward from any executor, administrator, legatee, next of kin, or heir of any decedent; and, for any such offense, the clerk shall dismiss him from such service, and, upon conviction, he shall be fined not exceeding five hundred dollars and imprisoned in the county jail not exceeding one year (one or both), and the court shall have the power to assess the imprisonment, if the jury does not do so, as well as a fine, within the limit of the power of the court. (Shan. Code (1906), p. 286.)

§ 1149. Records to be Kept by Clerk of Court.

Sec. 739. It shall be the duty of the county court clerks to enter in a book to be provided at the expense of the state, to be kept for that purpose, and which shall be a public record, the returns made by all appraisers under sections 724 to 756, inclusive, opening an account in favor of the state against the decedent's estate, and the county court clerk may give certificate of payment of such tax from said record; and it shall be the duty of said clerk to transmit to the controller, on the first day of each month, a statement of all reports or returns made by appraisers during the preceding month, which statement shall be entered by the controller in a book to be kept by him for that purpose. (Shan. Code (1906), p. 286.)

§ 1150. Proceedings to Enforce Tax.

Sec. 740. Whenever any such tax on real estate shall have remained due and unpaid for one year, it shall be the duty of the county clerk, in his official name as clerk, to apply to the county court, by bill or petition, to enforce the payment of the same; whereupon, after process is duly served or notice duly given to the owner of the real estate charged with the tax, and to such other persons as may be interested, after the manner of the practice of the chancery courts, the county court shall proceed, according to equity, to make such decrees and orders for the enforcement of the lien and the payment of said tax out of such real estate as shall be just and proper, the county court being hereby invested with jurisdiction for said purposes; and any sales of real estate made hereunder shall be made on a credit of not less than six nor more than twenty-four months, barring the right of redemption as in chancery sales. (Shan. Code (1906), p. 286.)

§ 1151. Sale of Property to Pay Tax.

Sec. 741. If no one bids an amount at such sales sufficient to cover the taxes due and costs, the clerk of the county court, by himself or agent,