paid by him, and all expenses of administration. Where there are many items of receipts or disbursements, it is advisable to have them separated under schedules and reference made to the schedules in the final account. Rule XI of the probate court provides for manner of rendering account, notice of hearing and examination thereof. Upon the allowance of the final account, it is the usual practice for the probate court to determine the amount of the inheritance tax and assign by an order the residue of the estate to the persons entitled to receive it. When real estate is assigned by the court, a certified copy of the order should be recorded in the office of the register of deeds. P. A. 1913, P. 721 The legislature of 1913 provided that whenever the probate court shall, in the final settlement of the estate of a deceased person, make an order determining who are, or were, the heirs-at-law of such deceased person at the time of his death, a certified copy of such order may be recorded in the office of the register of deeds of any county in the state, wherein may be located any real estate owned by such deceased person; and such order, or record thereof, shall be prima facie evidence of the fact set forth therein, and shall be admitted in evidence in all courts of the state upon any trial or proceedings where the question of such heirship may be involved. Upon the filing of receipts showing that the administrator has distributed the estate in accordance with the orders of the court and has paid the inheritance tax as directed, the court will discharge the administrator and his bondsmen. Sec. 9465 When any administrator or executor is unable to find a non-resident or unknown heir or claimant to an estate of a deceased person, he may, under the orders of the probate court, deposit the money belonging to such non-resident or unknown heir with the county treasurer and file his receipt therefor with the probate court. INHERITANCE TAX P, A. 1899, P. 284 The legislature of 1893 passed the first Amended P. A. 1903, P. 277 P. A. 1913, P. 48 law in this state providing for an inheritance tax. This law was held unconstitutional by the supreme court. In 1899 a second inheritance tax law was passed, the validity of which was sustained by the supreme court in the case of Union Trust Co. vs. Wayne Probate Judge, 125 Mich., page 487. In 1903, there was a general revision of the act. It has also been amended by various acts, as shown above. The inheritance tax is paid to the county treasurer of the county in which the estate is being administered, and by him the money is sent to the state treasurer. The supreme court has determined that it is a specific tax and can be used only in the payment of interest on primary school, university and other educational funds. The money is therefore apportioned and paid over to the different counties on the same basis as primary school money. The tax is imposed upon the transfer of any property, real or personal, of the value of one hundred dollars or over, or of any interest therein or income therefrom, in trust or otherwise, to persons or corporations, not exempt by law from taxation on real or personal property, on the basis of five per cent upon the clear market value of such property in the following cases: I. When the transfer is by will or by the intestate laws. of this state from any person dying seized or possessed of property while a resident of this state. 2. When the transfer is by will or intestate law of property within the state, and the decedent was a non-resident of the state at the time of his death. 3. When the transfer is of property made by a resident or non-resident, when such non-resident's property is within this state 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. To the above general rule there is the following excep tion: P. A. 1913, P. 48. "When the property or any beneficial interest therein passes by any such transfer to or for the use of one or more of the following named persons: Grandfather, grandmother, father, mother, husband, wife, child, brother, sister, wife or widow of a son, or the husband of a daughter, or to or for the use of any child or children adopted as such in conformity with the laws of this state or any other state or country, of the decedent, grantor, donor or vendor, or to or for the use of any persons to whom any such decedent, grantor, donor or vendor, for not less than ten years prior to such transfer stood in the mutually acknowledged relation of a parent, or to or for the use of any lineal descendent of such decedent, grantor, donor or vendor, such transfer of property shall not be taxable under this act, unless it is personal property of the clear market value of two thousand dollars or over, and when the transfer is to wife such transfer of property shall not be taxable unless it is personal property of the clear market value of five thousand dollars or over, in which case the entire transfer shall be taxed under this act at the rate of one per cent upon the clear market value thereof. The exemptions of sections one and two of this act shall apply and be granted to each beneficiary's interest therein, and not to the entire estate of a decedent.” Under the first section of this inheritance tax law, if a beneficiary should be entitled to $99.99 from an estate he would be exempt from the tax, but if he should be so unfortunate as to receive one penny more, he would have to pay $5.00 tax. If under the second section, the beneficiary should receive $1,999.99 he would have to pay no tax but if the additional one cent should be added, he pays $20.00 to the state. The tax is made a lien on the property transferred, and the person to whom it is transferred, and the administrator, executor, and trustee of every estate so transferred are personally liable for the tax until its payment. All taxes imposed by the act accrue, and are due and payable at the time of transfer, which is the date of the death of decedent. If they are paid within twelve months of date of transfer a discount of five per cent is allowed. If not paid within eighteen months from the accruing thereof interest shall be charged and collected at the rate of eight per cent per annum; unless on account of unavoidable delay, the tax cannot be determined and paid, in which case interest shall be charged upon such tax at six per cent after the expiration of eighteen months. The judge of probate may appoint an appraiser to determine the clear market value of the property at the date of transfer, who shall receive for his services three dollars per day and his necessary expenses and disbursements. Where a transfer of real estate is taxed, the county treasurer, upon application, and the payment of a fee of fifty cents will make a certified copy of the receipt showing payment of tax upon such land, and such receipt may be recorded in the office of the register of deeds in the county where the land is situated. RELEASE OF TAX P. A. 1909, P. 700 When the inheritance tax law was enacted there was much uncertainty as to the method of collection of the tax and as to what estates were really taxable. The legislature of 1909, in order to effectually settle any question as to liens upon lands where the estates had been closed, provided that no heir, legatee, executor or administrator should be held liable for an inheritance tax where the property had been distributed by order of the court prior to January 1, 1905, nor where the executor had been discharged, nor where the estate had been closed prior to that date, and all the inheritance tax liens upon all such property were released. Foreign executor or administrator not allowed to P. A. 1913, P. 28 If a foreign executor, administrator or trustee shall assign or convey any stock or obligation in this state standing in the name of a decedent, or in trust for a decedent, liable to any such tax, the tax shall be paid to the treasurer of the proper county on the transfer thereof; and any corporation or person having control over such assets, shall not deliver or transfer the same to any person or corporation other than an executor, administrator, trustee or guardian duly qualified under the law of the state, until the tax to which the same is liable has been paid, as provided in this act. Failure of any company to comply with the provisions of this act makes such company liable to the payment of the tax itself. RE-HEARINGS P. A. 1905, P. 417 The judge of probate may upon the filing in court of a petition therefor within ninety days of the original hearing, or of the rendering or making of any order or decree, after due notice to all parties interested, grant rehearings, and may modify and set aside orders, sentences and decrees rendered in such court. |