Montclair Trust Co. v. Spadone

The first question is whether any part of the burden of the New Jersey inheritance tax and the federal estate tax should be placed on two trusts established by testator in his lifetime. In case of intestacy, or where the will contains nothing to the contrary, the state tax, which is assessed against each transfer separately, is payable ultimately by the donees severally. R.S.54:34-1. Fidelity Union Trust Co. v. Hall, 125 N.J. Eq. 419 (at p. 430); Morristown Trust Co. v. Childs, 128 N.J. Eq. 524. The apportionment of the burden of the federal tax is a matter which the states are free to…