Cory

Kenneth Cory, State Controller, appeals from an order fixing, after objections, the total inheritance tax payable by the *517 beneficiaries of the estate of Winifred W. O’Donnell, also known as Mrs. Thomas A. O’Donnell, as $58,042.36. The appeal lies. (Prob. Code, § 1240.)

The report of the inheritance tax appraiser set the tax due as $891,692.18. The trial court, however thereafter, sustained written objections, filed jointly by the executor of the estate of the above-named decedent and by the trustee of the Thomas A. O’Donnell trust, to this figure. The inheritance tax appraiser included as an inter vivos transfer, taxable under Revenue and Taxation Code, sections 13641 to 13648, 1 one-third of the trust property—the one-third being appraised at $6,152,371.88.

This case presents several questions regarding the taxability under our Inheritance Tax Law (§ 13301 et seq.) of the aforementioned one-third of the trust property over which the decedent, Winifred, held a power of appointment jointly with two others. The Controller contends in this court that this one-third is taxable under section 13696, either in its entirety or, at least, to the extent of $600,000 thereof.…