Deductions allowed. The value of the net estate is determined by deducting from the value of the gross estate the exemptions hereinafter shown; all debts of decedent; taxes, as specified; funeral expenses, and not exceeding $500 for monuments; commissions of executors and administrators; cost of administration, including reasonable attorneys' fees. The family allowance is not deductible in an amount exceeding $2,000 for the widow, plus $300 for each minor child, and it is not deductible except to the extent that it exceeds the income of the estate. (3)

Exemptions. The following bequests, legacies, devises, or transfers are exempt from this tax: Those made to or for the use of any public institution for public purposes or for any charitable, educational, or religious purpose. Individual beneficiaries are allowed the following exemptions: Wife or husband, $20,000; lineal ancestor or descendant, adopted child, or stepchild, or lineal descendant of either, $2,000, and if a minor, $5,000. All proceeds from life insurance policies not in excess of $20,000 are exempt from this tax. (2, 3)

Classification of beneficiaries.—The beneficiaries under this act are placed in one class and, therefore, pay the same rates of tax. (3) Rates of tax. The rates of tax payable by beneficiaries are as follows:

(3)

Payment of tax; interest.-The taxes due under this act are payable to the county treasurer within 1 year after the date of death of the decedent, and bear interest at the rate of 6 percent per annum, computed from the expiration of said 1 year until payment. (12)

Tax lien. All taxes imposed by this act remain a lien upon the property transferred and upon all property acquired by the executor, administrator, or trustee until the taxes are paid or a bond given, but said lien does not affect any tangible or intangible personal property after it has passed to a bona fide purchaser. (8)

Disposition of proceeds. Each county treasurer collecting any taxes imposed hereunder pays 35 percent thereof to the State treasurer, and retains 65 percent for the general fund of his county. In case no county court has jurisdiction, the amount of the tax is determined by the State tax commission, and the State treasurer collects the same and deposits the proceeds to the credit of the general fund of the State. (9)

Administration of act.-The State tax commissioner has full supervision of the enforcement and collection of all taxes due under this act. (5)

Sources of information.-Chapter 267, Session Laws, 1927; Chapter 251, Session Laws, 1933.

OHIO

INHERITANCE AND ESTATE TAXES

Tax imposed. A tax is levied upon the succession to any property passing, in trust or otherwise, to or for the use of a person, institution, or corporation. This tax is upon the excess of the actual market value of such property over and above the exemptions made and at the rates hereinafter prescribed. (5332)

Transfers taxable. This tax applies when the succession is by will or by the intestate laws of this State from a person who was a resident of this State at the time of his death; when the succession is by will or by the intestate laws of this State or another State or country, to property within this State, from a person who was not a resident of this State at the time of his death; or when the succession is to property from a resident, or to property within this State from a nonresident by deed, grant, sale, assignment, or gift, made without a valuable consideration substantially equivalent in money or money's worth to the full value of such property: (a) In contemplation of the death of the grantor, vendor, assignor, or donor, or (b) intended to take effect in possession or enjoyment at or after such death. (5332) Same. Whenever any person or corporation exercises a power of appointment derived from any disposition of property, such appointment when made is deemed a succession taxable under the provisions of this law in the same manner as if the property to which such appointment relates belonged absolutely to the donee of such power, and had been bequeathed or devised by said donee by will; and whenever any such person or corporation possessing such power of appointment omits or fails to exercise the same within the time provided therefor, in whole or in part, a succession taxable under the provisions of this law is deemed to take place to the extent of such omission or failure, in the same manner as if the persons, institutions, or corporations thereby becoming entitled to the possession or enjoyment of the property to which such power related had succeeded thereto by will of the donee of the power failing to exercise the same, taking effect at the time of such omission or failure. Whenever property is held by two or more persons jointly, so that upon the death of one of them the survivor or survivors have a right to the immediate ownership or possession and enjoyment of the whole property, the accrual of such right by the death of one of them is deemed a succession taxable under the provisions of this law in the same manner as if the enhanced value of the whole property belonged absolutely to the deceased person, and had been bequeathed by him to the survivor or survivors by will. (5332)

Same. When a decedent appoints one or more executors or trustees, and instead of their lawful allowance makes a bequest or devise of property to them, which would otherwise be liable to such taxes, or appoints them as residuary legatees, and such bequest, devise or residuary legacy exceeds what would be a reasonable compensation for their services such excess is deemed a succession and

liable to such tax. Whenever any property passes 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 accruing to any person, institution, or corporation, on the extinction and determination of such charge, estate or interest, is deemed a succession taxable under the provisions of this law, in the same manner as if the person, institution, or corporation beneficially entitled thereto had then acquired such increase from the person from whom the title to their respective estates or interests is derived. (5332)

Additional estate tax.—In addition to the tax levied under this inheritance tax law, an additional estate tax is levied upon the transfer at death of the estates of resident decedents of an amount equal to 80 percent of the tax imposed under the Federal estate tax act.2 The proceeds of this tax are distributed as is provided herein for the disposition of the proceeds of the inheritance tax; and the provisions herein relating to the administration, collection, and payment of the latter apply to the former, except that no discount is allowed for advance payment, and that no interest is charged until 60 days after the time of determination of the Federal estate tax liability. (5335-1, 5335-4)

Exemptions. Under this inheritance tax law, the succession to any property passing to or for the use of this State or any of its municipal corporations or other political subdivisions for public purposes; or to or for public institutions of learning within this State, or within any State of the United States which does not impose an inheritance, estate, or transfer tax on property given thereto by a resident thereof for purposes of public charity, carried on within this State, in whole or in substantial part, is not subject to this tax. Individual beneficiaries are allowed the following exemptions: Wife or minor child of decedent, $5,000; other beneficiaries of class A, $3,500; class B, $500; no exemption for beneficiaries of class C. Proceeds of life insurance policies payable on the death of the insured, otherwise than to his estate, are exempt from this tax, whether payable directly by the insurer to the beneficiaries designated in the policies, or to a trustee so designated, to be managed by him and distributed to designated beneficiaries. (5332.4, 5334)

Classification of beneficiaries.-The beneficiaries under this act are classified as follows: Class A: Wife, child, father, mother, husband, lineal descendant, adopted child or lineal descendants thereof, of decedent. Class B: Brother, sister, niece, nephew, wife or widow of a son, or husband of a daughter, or mutually acknowledged child, of decedent. Class C: All others. (5334)

Rates of tax. The rates of tax payable by the several classes of beneficiaries on the successions passing thereto are as follows: (5335)

Payment of tax; discount; interest. This tax is payable to the treasurer of the county in which is located the court having jurisdiction of the proceedings, and it is due at the time of the succession, except as otherwise provided, but in no case prior to the death of the decedent; if paid before the expiration of 1 year after accrual, a discount of 1 percent per month for each month that payment is made prior to the expiration of the year, is allowed; if not paid within 1 year, interest is charged at the rate of 8 percent per annum, unless the amount cannot be determined, in which case interest at the rate of 5 percent per annum is charged from the expiration of 1 year until the cause of delay is removed, after which 8 percent is charged. (5336, 5338) Tax lien. This tax is a lien upon the property passing until paid, and the successor and the executor or administrator of the general estate of the decedent, and the trustee of such property are personally liable for all such taxes, with interest, until payment thereof. (5336)

Disposition of proceeds.-Fifty percent of the gross amount of taxes paid hereunder is for the use of the municipal corporation or township in which the tax originates, and is credited one-half to the sinking or bond retirement fund, if any, of the municipal corporation and the residue to the general fund in the case of a city, and to the general revenue fund of a village or to the board of education of a village as the village council may approve; and to the general revenue fund or to the board or boards of education of the school district or districts of which the township is a part, for school purposes, as the trustees may approve. The remainder of such taxes, after deducting fees and costs, is for the use of the State, with not exceeding 2 percent for the inheritance tax administration fund for administering this law, and the balance to the general revenue fund of the State. (5348-11) Administration of act.-The State tax commission administers the provisions of this act. (5345–3)

Source of information.-Page's Ohio General Code Annotated, 1937.

OKLAHOMA

ESTATE TAX

Tax imposed. Under the "Inheritance Tax Act of 1935," an estate tax is levied upon the transfer of the net estate of every decedent, whether in trust or otherwise, to persons, associations, or corporations, of real, personal, or mixed property, tangible or intangible, or any interest therein or income therefrom, by will or the intestate laws of this State, or by deed, grant, bargain, sale, or gift made in contemplation of the death of the grantor, vendor, or donor, or intended to take effect in possession or enjoyment at or after such death. (961)

Transfers taxable. The value of the net estate is determined by first determining the value of the gross estate, and deducting therefrom the debts, costs of administration, allowances and exemptions. The value of the gross estate is determined by including (a) the value at time of decedent's death of all property, real, personal, or mixed, tangible and intangible, within the jurisdiction of this State, and any interest therein, or income therefrom, including the homestead in excess of $5,000, which passes to any person, association or corporation, in trust or otherwise, by testamentary disposition or by the laws of inheritance or succession of this or any other State, or county, or by deed, grant, bargain, sale, or gift made in contemplation of the death of the grantor, vendor, or donor, or intended to take effect in possession or enjoyment at or after his death. (b) To the extent of any interest therein of which the decedent has made a transfer, in trust or otherwise, where the enjoyment thereof was subject, at the date of his death, to any change through the exercise of a power, either by the decedent alone, or in conjunction with any person not the beneficiary of the interest involved, to alter, amend or revoke the terms of such trust; or where the decedent relinquished any such power in contemplation of his death, or where he has reserved to himself during his life the income from the property included in any such transfer. (962) Same. (c) To the extent of the value of any interest held as joint tenant, or tenant in common, by the decedent and any other person, or as tenants by the entirety, or as joint depositors, and payable to either or the survivor. (d) To the extent of the total amount of the proceeds of life insurance payable or accruing to decedent's estate, by virtue of policies taken out by the decedent upon his own life, or the annuities, cash surrender values, or options held in life insurance policies upon the lives of others. (e) To the extent of the excess over $20,000 of the amount receivable directly, in trust, or as annuities, by all beneficiaries, of the proceeds of life insurance, by virtue of policies taken out by the decedent upon his own life, and in which, at the time of death, decedent had the right to change the beneficiary, or to convert the policy to his own use; but this does not apply to proceeds of any war risk insurance policy, or of any policy issued under the World War Veterans Adjusted Compensation Act, or proceeds