Cranston

Bank of America National Trust and Savings Association, as executor of the will of Peter Tutules, deceased, appeals from order overruling objections to report of inheritance tax appraiser and fixing inheritance tax. The question presented for our determination is whether the court properly upheld an inheritance tax upon decedent’s interest as beneficiary of three Illinois land trusts; the corpus being Illinois realty, the trustee a Chicago Trust Company, but decedent being domiciled in the State of California at the time of his death. In one of the trusts he owned 100 per cent of the beneficial interests, in the others 83% per cent and 50 per cent. Inheritance tax upon these interests was paid to the State of Illinois.

Appellant argues that as a matter of constitutional law the State of California has no jurisdiction to tax because the beneficial interest in a land trust is real property situated outside the state and hence California’s taxing power does not extend to it. The exact terms of the trusts are important in determining the question now before us.

The pertinent provisions are these: “It Is Understood and Agreed between the parties hereto, and by any person or persons…