TAXATION - JURISDICTION TO TAX THE EQUITABLE INTEREST OF A TRUST BENEFICIARY

Pennsylvania levied a property tax on a resident beneficiary's equitable interest in a New York trust. The settlor of the trust, a New York resident, had created the trust there and both the trustee and the stocks and bonds comprising the corpus were in that state. The beneficiary had no control over the disposition or management of the corpus and was entitled merely to the income of the trust for her life. The Pennsylvania Supreme Court upheld the tax.

On appeal to the United States Supreme Court, held, in a per curiam decision without opinion, that the state court's decision should be affirmed. Stewart v. Pennsylvania, (U. S. 1941) 61 S. Ct. 445, affirming Commonwealth v. Stewart, 338 Pa. 9, 12 A. (2d) 444 (1940).