CONSTITUTIONAL LAW - DUE PROCESS - JURISDICTION OF A STATE TO TAX THE EXERCISE OF A POWER OF APPOINTMENT

Decedent\u27s father, a resident of Massachusetts, by his last will created a trust of the residue of his estate, consisting of intangibles, and gave one share to decedent for life, with remainder to whomsoever decedent should appoint by will. The trust was administered in Massachusetts and there was no question as to that state\u27s power to tax. Decedent, a resident of New York, appointed his share to his widow. The New York courts held that although the interest of the decedent fell within the provisions of the New York tax law imposing a tax upon the transfer of the net estate of resident decedents, the property passing under the power of appointment should not be taxed because the tax violated the due process clause of the Fourteenth Amendment, according to Wachovia Bank & Trust Co. v. Doughton. On appeal to the United States Supreme Court, held, that this interest was within New York\u27s taxing power. Graves v. Schmidlapp, (U. S. 1942) 62 S. Ct. 870 (1942)