In re McKelway's Estate

Summary

The New York Surrogate’s Court held that an agreement placing securities in joint ownership between a husband and wife created a joint tenancy with a right of survivorship. Because the transfer was completed during the decedent’s lifetime, it was not subject to the transfer tax, and the widow’s appeal was sustained.

Holdings

1. The agreement had the present effect of making the husband and wife joint tenants and owners of the securities described in it; the later submission of additional securities had the same effect as to those securities.
2. The agreement's provision allowing revocation applied to the agreement between the joint owners and the trust company, not to the arrangement establishing joint ownership, and the provision requiring equal payment of income was not inconsistent with joint ownership.
3. The securities were not subject to transfer taxation upon the decedent's death because any transfer was consummated during his lifetime, and the transfer did not become taxable under chapter 664 of the Laws of 1915.

Questions Presented

1. Whether the agreement and related conduct created a joint tenancy in the securities with a right of survivorship.
2. Whether the agreement's revocation provision or equal-income provision negated joint ownership.
3. Whether the transfer of the securities was subject to a transfer tax upon the husband's death under the Transfer Tax Act or chapter 664 of the Laws of 1915.

Disposition

other