Taxation — Transfer inheritance tax — Gifts — Items in safe deposit box of decedent — Evidence — Witnesses — Competency — Restatement, Trusts — Acts of May 23, 1887, P. L. 158, and June 20, 1919, P. L. 521.
1. On appeal from a supplemental inheritance tax appraisement, in which it appeared that in decedent's safe deposit box there were items of currency, bonds and jewelry, almost all in envelopes or packages bearing particular notations that the items were the property of named third persons, it was Held that the testimony established that the items belonged to the different claimants and not to the estate. [233-9]
2. In such case, it was Held that (1) the claimants were not incompetent to testify, under the Act of May 23, 1887, P. L. 158, section 5(e), and (2) the failure of the Commonwealth to object to their testimony was a waiver of its alleged incompetency. [236]
3. In such case, where it appeared that U.S. Treasury bonds, in an envelope bearing a notation that they were the property of A. were registered in the names of decedent or A, and the testimony did not clearly indicate that the decedent had no interest in them, it was Held that the bonds were subject to the transfer inheritance tax at one-half the assessed value. [236-7]
4. Where it appeared that at the time of decedent's death savings accounts in various banks stood in her name "in trust for" certain named persons, that in each case the decedent had notified the beneficiary of the opening of the account and stated that the account was a gift or that it was in payment of a debt, that the passbook was delivered to each beneficiary, and that the decedent did not make a withdrawal from any account for her own use, it was Held that (1) the trusts created were irrevocable and (2) the gifts of the bank accounts were not taxable under the Act of June 20, 1919, P. L. 521, as amended, as transfers intended to take effect in possession or enjoyment at or after death. [236-41]
Restatement, Trusts, section 58, cited. [239]
Argued October 1, 1946.
PER CURIAM, November 8, 1946:
The decree of the Orphans' Court is affirmed on the able opinion of Judge TENER. Costs to be paid by appellant.