OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Eonor8blo Ooorgr B. Shrppard
oomptrollar of Poblio Aooomntr
Allatin,‘hxaxar
Dear 8irr O9lnion lo. 0-6&n
Ro : mn0r0n nd0
latter J~OP have rubmittod an
prod bj the ax
srntatira rr0m your
oodont, 1 rorido
lr itr no Ta
o rp lr p o r ra lt
2, thr doordrut mda artalu
and oonrirtlng of (1) oath
who had mcsivrd yrarioua
fincn~i~i aYclstakco rrom thr deooaant, riimrgatina for tha
par lgL2, el ,620.OO. ihosdent ~18 In good laoalth st th*
tima these tmnarers Vera m&de, rhloh fact la rupportrd by
his physician’s statdmrnt. .;lthaugtr sarrrri yeera prior to
Limornblr Coorga ii. Arppcra, ;P&O 2
lgL2, thr droodsat had dispoard of hi8 lntrrest in s largs
oarosntllr oorporatlon, ha oontlnurd his bwinoas, oivfo,
md philanthropic aotlvltlrs, golnd to h14 orflcr saoh d4l
306 rrn& 44 ab aotiro aaabsr or thr Board or Dlrrotirs
0r two lsrgr oorpolatlon4. During the year 1943, the only
rrportoa girt or tranrrrr mda by tho dooodmt war that or
(I ohsptor hous or tha spproabate raluo or ~11,000.00, glr-
an to tha Aasrlosn Fiod Cross. Tho dooodont’m sroragr anwal
looms duriw thr tsars 194l,1912 4~3 1943 844 rpproxlutoly
#26,000.00. Thorr Is lppondod to tb sbors ststoasnt or
rsots 8 girt sohoduls oorrrlag your0 prior to 1942 snd 8
sohoduls in tabular rorm rhowing all tranmrsrr f’rctm 1930 to
1942. %oh sohodulos or8 submlttod as tandlng to &on that
the gift4 m4ds duriw the yssr 1942 by tho droodont lrldanord
a prior snd ooatlnulng prsctios of hslplug hlr r8lstfrar in
nr0d or rinsnoisi s8818to~00.
krtlolo nl7, Borl8rd civu. atrtutor or TOUS, 44
smoadod, dororlkr property whI4h shsll be 4ubJsot to InhsrL-
tsnoo taxal sncl ln ths lart ssntsa00 or thlr art1010 prorl4lon
io audr ror iaposlng bhsritanoo ts108 uador oortsin oondi-
tlona on property tmasrarmd within tvm yam8 prior to ths
death al thr dsasdsnt, Tha 4a41y414 and iatrrprot4tion or
thie last srntmor In itr reletion to thr aborr rtatrd Bats
1s ths graramsn 0: this opinion, It prorlaoo:
want trsorfsr as44 by 4 amhor, vendor or
donor, ah8 thar by drod, &k&; ale iiralit. #hall.
unlsar rhoan to ths OontmrY, br doomed to hsro
hem aads In ccntrmrAatlon of drath and aubjrot
to thr 81~0 hr 44 hrrrln prorldsd, if ruah trsnr-
far la nsda 4Ithln two (2) ysnrs prior to thbr dssth
ci the grantor, vwdor, or tionor,of 4 matrrlal
yx.rt cf tls e3t4ta, or lf tts transfer arrdralthin
such parlod le 1~ the mture of a final dlstrlbu-
tlon bt poy:ertp and rlthcut adequate velue3lr
ccz:lderstIon.” ( .qhs,sl~ 32:rG)
313 ~rovlslon cry::! t06 8 rsbuttazla prrrunytlor tm t
:rxnsfsru of 8 a?terlcl ,-ert 0:' tk.5 Saced3nt'l, 33tst3 Or
tr~!7.$r3Ps ln the Mtlrr.3 of a flnS1 U;I‘E?B
Court considrrsd the question of rifts or transfers ylda 1:~
cont8mpletIon of death aa provId8d In the kt8ru81 &venue
tid8 (888 Titlr 26, SgctIon 8110, V.S.C.X.) Is United Ltatez
ve r:‘8lls, (283 U. S. 102), fn which an extended dISOuszIon Of
the m8aning of thlr phrase was vmlttrn by the lot8 ChI8f Just-
108 tipgh88, Th8 ?OllOWine 8XO8rptll from this Opinion a18
drrmrd to hav8 a dirrot braring on thr instant Oa88:
Honorable OIorge b, Sheppard, Psga 6
orrtain fundaarntal oonrid~rrtlonr. It is raoag-
Bitad that the referonce ia not to tha ganaral
lxpaotatlon of daath whloh all lntartaln. It aunt
ba a partlouhr aonoarn, giving rlra to a datlnlta
motirr . maneerr in Oontuputioa or
bath ora’l&dad within tha 8am oatagory, ror
tha par~ora of taratlon, rlth trrnriarr lntandad
to take 8rr809 at or 8rt8r th8 daath or th8 tMB8-
‘Iaaa, brtr88B
tha tnnrfar and darth, 18 raao&-
nlnd by tbr
8tatdory prOvl8lOn Onat@ 8 pra-
8U8ptiOB in thr 0888 Or girt8 Wit&¶ tU0 J88r8
prior to daath. &It thi8 p?88U8ptiOB, by t& rtat-
Pta b@fOM U6, 18 OXpr888)J ltatad t0 ba 8 nbut-
tab18 ona, and tha aara faot that drrth 8MU88
avan 8hOrtl.f 8it.r tha gift dOa not datarnlna
lbaolataly that lt 18 in oontamplation ot daath.
. . .
"A8 thr te8t. d88rdta V8WiIlR OirOM8teBO88
18 alwar to br found in 8Otlv8, It o86uot ba mid
th8t the datamlnatlta mtlrr f8 laokin srr@ly
baOau8e 0r tha absrnos of a consolousn~is that-
death le iaminent. ua age msy girr pm-
monltlonr and pro~pti&s*inarpandant 0r mortal
Bonorebla Oaorga H. Shrppard, Fags 7
SfiOrd8 tha tart,
It fOllOW8 the t tha ltatuta doss
intar ~1~08 nhloh lprlng rrom a
not lnb r a o girt8
r
dlrrannt aotlra. A8 ilhStrt%tiQ& tr8II8-
farm round to ba rkia~a~ to purpoaar l88oolatad
with llfa, mthrr th8B rlth tha dlrtrlbotlon of
proparty in antlolpatlon of daath, tha Corarnaant
BOt OrhrU8tiVS. Thr plWpO888 rhloh B8l b8 rartad
without partloular oon8ldar8tlon 0r tit avant
TbSrS My b8 t68 darilr t0 r8006BiZS 8DSOi81 Birds
or lxlganola8 or to dlrohar60 moral obll6atloonr.
pha gratlilcatlon 0r ruoh da8ina nay ba a mora
ooapalllng aotira th8n any thoughtsof daatL
l... Thora 18 no l8oapa rrom tha naoaa8lty
or oaretully 8OIWthiZiIU thr olraumtanoa8 or 88oh
oa88 to dataot tha Qalnant aotlra of tha donor la
th light of hl b dlly and manta1 sondltlon, and
l
thar gira tiao: tt tha manifart purpoar Of tha
rtatuta." (Emphnrlr addad) (For othar oa888 888
Mllllkan v. Unltad Stataa, 283 U, S. 15; Nloho18
V. Cool&y, 274 U. S. 531; Colorado National Benk
v. Commission of Intsrnal ihrsnue, 305 u, 8. 23;
Eiackar v. St. Louis Trust Company, 296 U. 8. 16.)
u8inf the above excerpt8 08 fl &da3 ma lnquirin&
into the deoadent’s sotlves pro;n,ntiq the gifts In tlia pre-
sent case, consideration has been piven to the principal itex
cozprialng the @iits a8 set forth in tha abov8 agreed Sata-
msnt of Facts.
Of tha sotal gifts, $8,000.00 ms glvan to fire
ralatlrrr on Ikosmbsr 19, 1942, and 18 rrti~rnada0 Christmar
prrsrnts. ThlS itaa is mada up of thrurs ElftS in the amount
iionorablr Caorga h. Sheppard, Paga 8
of $2,000.00 raoh and two gift8 In tha amount of ~l,OOO.OO
laoh. Four of tha flrr raolplantr tharoof had prarlously
raoalrad gift8 or flnanolal asslstanoa fro3 thr dsordant.
Gthar ralatlrar hot inoludad had, prior to 1942,bran glvan
rarylng amounts by tha daoadant. Although tha rroord doar
not 8hOrrthat Chrlrtmar pr888nt8 ln 8IIOUlIt888 8Ub8tantial
a8 thaaa had prior to 1912 barn glean by tha drordant, it
ha8 bran noted that no Chri8tM8 prr 88Bt8 WhatSvST warm mada
in tha yaar r0ii0ag. At tha tin0 tbrra girt8 wars mada
the d4oadant Wa8 in good haalth and t& Only oOn8olouma88
or daath whloh might be lsputad to hia would lia in “tha
pramonltlon8 lBd proaptlngr~ 0r old aga. Itlppaar8, how-
lvar, th8t thasa gift8 wars mad8 Uwough hi8 Rda81ro to reoog-
nizr rpaoial Bead8 and lxiganoiaa or to dlroharga moral ob-
llgatlon8.*
Or tha tot81 (ift8, $5,000.00 W88 lrada to a Baphaw
in April, 1942, throu&h tha mBoall8tion Of an iBdabtadna88
orlginslly oraatad in 1940, fn 1936 tha daoadant had oan-
oallad 8 largar indabtadna88 (410,125.00~ or a till laothar
naphrw in tha 8801 aarmar. Tha orl(linalloan ot $~,OOO.OO
war prsdaror thr purpoaa 0r halping tha naphaw in'rrtablirh-
log a buslnaar. It 8ssm8 apparaot thrrafOr8 that thl8
$5,000.00 ltan fall8 proprrly rlthln tha daoadant~a daslrr
‘to hava ohildran, or Othrr8 who may ba tha approprlatr ob-
jaot8 of tha dOBOr’8 bounty, lndapandantly 08tabllshad with
oompatanolaa 0r tlm.lrown.*
Or tha total, $1.620.00 wa8 glran in monthly pay-
nant8 to a nlaoa during tha yaar 1942. Tha raoord show8
that thr daoadant had bran giving thla nlaoa rariour amounts
during tha iii8 yaerr prroading. Thr noord al80 8hows th8t
this nlsos had lived in the asosdsnt’s home ad a child snd
x8.3 loft a widow about 1930 kith two sons to maintain tend
6auoat8. It aesms enparent that the motlvr of this flnanolal
assistance llils tha deoedsnt’s desire to”discharge moral ob-
lipetiona”.
L‘n the vhole, it ay,paara that thaso *era bona fide
gifts inter vlvna i-2 ti;?t they ware asds for purposes “asso-
cletsd ulth lifs”. The record renals th3t the drcsd*nt
recognized moral obll~atlons to all of his relstivrs. In
visa of the daosdrnt’s wealth and lnoomr tbar gifts were net
unusual. Certainly, they are not in a naturr of “a tsata-
msntary d18posltionR, and do not evldsnoe any attampt on thr
pert of the dscedant to wads the inheritanoe tez.
Honorsblr George H. Shrppard, Fsga 9
Tha ibrogolng consldrrod, lt is conaludrd that
(1) tha gifta In qurrtlon mrr not a mattrrlalpart of thr
drordrnt*r rstatr wltl.ln the meaning of Artlolr 711 or
Revlaad Clvll Statutrr of Toxaa, aa aamndad, and (21 that
(rrgardlrra of the amount lnvolvrd) thr faotr aub;aittrd am
~ufflolrnt to ovarooa the presumption that three gifts mny
havr bran madr in oontrmplatlon of drsth a8 prorldrd by eald
Artiolr.
Aooordlngly, you an a&lard that it la tha opinion
of thlr orflor that tha girt8 m&r by thr drordrnt in tha
amount of h4,620.00 during the year 1912 ma not taxabla
under thr Inhrrltanor Tax Lawr of Taxar.
Your8 varl truly
ATTCRNJ3T OENICRAL OF TqS/7
JL :mp
Untitled Texas Attorney General Opinion
Combined Opinion