Source: https://openjurist.org/307/us/57
Timestamp: 2019-04-23 20:24:48+00:00

Document:
An estate tax is not levied upon the property of which an estate is composed. It is an excise imposed upon the transfer of or shifting in relationships to property at death.9 The tax here is no less an estate tax because the proceeds of the policy were paid by the Government directly to the beneficiary; the taxing power was nevertheless exercised upon 'the transfer of property procured through expenditures by the decedent with the purpose, effected at his death, of having it pass to another.'10 In an analogous situation, Federal bonds exempt by statute from all taxation have been held subject to a Federal inheritance tax.11 And State inheritance taxes can be measured by the value of Federal bonds exempted by statute from State taxation in any form.12 Similarly, the statutory immunity of War Risk Insurance from taxation does not include an immunity from excises upon the occasion of shifts of economic interests brought about by the death of an insured.
Section 302(g) Revenue Act of 1926, as amended 26 U.S.C.A. § 411(g).
43 Stat. 607, 613, 38 U.S.C.A. § 454.
2 Cir., 98 F.2d 734. State courts have differed as to whether proceeds of War Risk Insurance are subject to death duties imposed by the States. See, for example, In re Estate of Harris, 179 Minn. 450, 229 N.W. 781, Tax Commission v. Rife, 119 Ohio St. 83, 162 N.E. 390, Wanzell's Estate, 295 Pa. 419, 145 A. 512, Watkins v. Hall, 107 W.Va. 202, 147 S.E. 876 (holding these proceeds not subject to such excises); and Matter of Sabin, 224 App.Div. 702, 228 N.Y.S. 890, Matter of Dean's Estate, 131 Misc. 125, 225 N.Y.S. 543 (contra). In view of this fact and the importance of an authoritative interpretation of the Federal statutes involved, we granted certiorari. 305 U.S. 591, 59 S.Ct. 245, 83 L.Ed. —-.
See, 44 Stat. 9, 21, 22, § 211; 48 Stat. 680, 684, 754, §§ 12, 405(a), 26 U.S.C.A. §§ 12, 535.
Treasury Regulation No. 70, (1929 Edition), Articles 25 and 27; Treasury Regulation No. 80, (1934 Edition), Articles 25 and 27.
49 Stat. 607, 609, 38 U.S.C.A. § 454a.
Lawrence v. Shaw, 300 U.S. 245, 249, 57 S.Ct. 443, 445, 81 L.Ed. 623, 108 A.L.R. 1102.
New York Rapid Transit Corp. v. New York, 303 U.S. 573, 592, 593, 58 S.Ct. 721, 731, 82 L.Ed. 1024; Trotter v. Tennessee, 290 U.S. 354, 356, 357, 54 S.Ct. 138, 139, 78 L.Ed. 358; J. W. Perry Co. v. Norfolk, 220 U.S. 472, 480, 31 S.Ct. 465, 468, 55 L.Ed. 548; Chicago Theological Seminary v. Illinois, 188 U.S. 662, 672, 23 S.Ct. 386, 387, 47 L.Ed. 641.
Reinecke v. Northern Trust Co., 278 U.S. 339, 347, 49 S.Ct. 123, 125, 73 L.Ed. 410, 66 A.L.R. 397; Chase National Bank v. United States, 278 U.S. 327, 334, 49 S.Ct. 126, 127, 73 L.Ed. 405, 63 A.L.R. 388; United States v. Jacobs, 306 U.S. 363, 59 S.Ct. 551, 83 L.Ed. —-.
Chase National Bank v. United States, supra, 278 U.S. page 337, 49 S.Ct. page 128, 73 L.Ed. 405, 63 A.L.R. 388.
Murdock v. Ward, 178 U.S. 139, 20 S.Ct. 775, 44 L.Ed. 1009.
Plummer v. Coler, 178 U.S. 115, 20 S.Ct. 829, 44 L.Ed. 998.

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