Simpson v. Ashman

Collins, J., delivered the opinion of the Court. This is an appeal from the Orphans’ Court of Baltimore City and comes here on a stipulation of facts and proceedings in that Court. ⁴⁹⁵ The stipulation shows that Rosalie H. Pranke-Wagner died testate in the City of Philadelphia on the fifth day of February, 1941. By her will, an exemplified record of which was filed in the office of the Register of Wills for Baltimore City, she devised the fee of a property at 2108 Walbrook Avenue, Baltimore. She had previously leased this property unto Alfred J. Simpson, Jr., and Essie P. Simpson, his wife, for a period of ninety-nine years at a yearly rental of $60.

On August 3, 1942, the Orphans’ Court of Baltimore City granted letters of administration cum testamento annexo to Louis S. Ashman, an attorney of the Baltimore Bar. An inventory was filed in the office of the Register of Wills showing that the only asset in said estate located in the State of Maryland consisted of the $60 yearly redeemable ground rent on the property hereinbefore mentioned, duly appraised at $1,000. On July 12, 1944, the Register of Wills for Baltimore City made written demand upon the administrator for the payment of the inheritance tax on this parcel of real estate appraised at $1,000, tax due at one per cent., $10. The said estate and the said administrator were without means to pay any part of this inheritance tax, the premium on his bond as administrator, or for the notice to creditors.

In order to pay these bills due by the estate and especially to meet the demand of the Register of Wills for the payment of the inheritance tax aforesaid, the administrator filed a petition and affidavit in the Orphans’ Court of Baltimore City on July 14, 1944, asking that Court to authorize him to sell the aforesaid ground rent, the only asset of said estate, unto the said Alfred J. Simpson, Jr., and Essie P. Simpson, his wife, for $1,000. Upon this petition and affidavit the Orphans’ Court passed an order authorizing and directing him to sell the aforesaid ground rent unto those parties for a cash price of $1,000, the redeemable value, and the rent accrued, and further ordered him to report the sale to that Court for ratification. In pursuance of that order, on August 24, 1944, the administrator reported the sale on the terms and condi ⁴⁹⁶ tions under which he was authorized to make the sale. On the same day the Orphans’ Court passed an order that this sale would “* * * be ratified and confirmed, unless cause be shown to the contrary on or before the 25th day of September, 1944; provided, a copy of this order be inserted in some daily newspaper published in the City of Baltimore, at least once a week for three successive weeks before the 25th day of September, 1944 * * This notice was published in the Daily Record of Baltimore once a week for three successive weeks before the 25th day of September, 1944, as required by the order nisi.

On September 14, 1944, Alfred J. Simpson, Jr., and wife filed exceptions to the ratification of the sale on specific grounds, all of these having been abandoned with the exception of the following: That the provisions of Section 122 of Article 81 of the 1939 Edition of the Annotated Code of Maryland, relating to executor’s or administrator’s sale of real estate for the nonpayment of inheritance taxes, or Section 118 of Article 81 of the 1943 Supplemental Annotated Code of Maryland, relating to the sale of personal property for the same purpose, are too vague and indefinite to authorize the sale that is the subject of this exception. Over this exception the Orphans’ Court passed an order ratifying the sale. From that order the appellants, Alfred J. Simpson, Jr., and Essie P. Simpson, appeal to this-Court. Article 81, Section 122, supra, relating to the collection of inheritance taxes, provides as follows: “The executor shall collect the same from the parties liable to pay said tax or their legal representative within thirteen months from the date of his administration, and pay the same to the register of wills of the county or city in which administration is granted;