Source: https://supreme.justia.com/cases/federal/us/326/367/
Timestamp: 2019-04-21 14:36:29+00:00

Document:
A federal estate tax, pursuant to § 811(e)(2) of the Internal Revenue Code as amended by § 402 of the Revenue Act of 1942, on the termination of a Texas marital community by the death of the husband, the tax being measured by the value of the entire community property, held valid under the Federal Constitution. Fernandez v. Wiener, ante, p. 326 U. S. 340. P. 326 U. S. 370.
This is a companion case to Fernandez v. Wiener, ante, p. 326 U. S. 340. The Commissioner of Internal Revenue, proceeding under § 811(e)(2) of the Internal Revenue Code, 26 U.S.C. § 811(e)(2), as amended by § 402 of the Revenue Act of 1942, 56 Stat. 798, has levied, and appellee has paid, an estate tax on the termination of a Texas marital community by the death of the husband, a domiciled resident of Texas, the tax being measured by the value of the entire community property. All of the constitutional questions raised here were presented and decided in Fernandez v. Wiener.
Appellee, decedent's Administrator, brought this suit under the Tucker Act, 28 U.S.C. §§ 761-765, to recover as an alleged overpayment so much of the estate tax paid as is attributable to the inclusion in decedent's gross estate of the value of the wife's share of the community property.
savings from the ranch business, rentals, and other income from investments.
In the estate tax return for decedent's estate, only one-half of the value of the community property was reported. The Commissioner included the full value of the community property in the decedent's gross estate, and assessed a deficiency accordingly, which appellee paid. In this suit, which followed, the district court gave judgment for appellee, 59 F.Supp. 483, holding that the tax violated the due process clause of the Fifth Amendment and the command of Article I, § 8 that "all Duties, Imposts and Excises shall be uniform throughout the United States." The Court found it unnecessary to pass on other constitutional contentions presented.
The case comes here on direct appeal under § 2 of the Act of August 24, 1937, 50 Stat. 751, 28 U.S.C. § 349a, appellant assigning as error the district court's ruling that the tax violates the due process clause of the Fifth Amendment and the uniformity clause of Article I, § 8 of the Constitution, and the district court's failure to hold that the tax is constitutional.
"that, if the husband, as agent of the community, acts in fraud of his wife's rights, she is not without remedy in the courts. Stramler v. Coe, 15 Tex. 211; Martin v. Moran, 11 Tex.Civ. App. 509, 32 S.W. 904; Watson v. Harris, 61 Tex.Civ. App. 263, 130 S.W. 237; Davis v. Davis, 186 S.W. 775."
Appellee also concedes that "excessive and capricious donations are void," and that malicious or fraudulent intent need not be established in order that the wife shall have the remedies referred to. Appellee does not question that these are the rules generally applicable to community property in Texas.
The death of either the husband or the wife of the Texas community thus effects sufficient alteration in the spouses' possession and enjoyment and reciprocal powers of control and disposition of the community property as to warrant the imposition of an excise tax measured by the value of the entire community.
MR. JUSTICE BLACK and MR. JUSTICE DOUGLAS concur in the result for the reasons stated in the concurring opinion of MR. JUSTICE DOUGLAS in Fernandez v. Wiener, ante, p. 326 U. S. 340.
* Speer, Law of Marital Rights in Texas (1929) p. 409 et seq.

References: § 811
 § 402
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 § 811
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 § 402
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 § 8
 § 2
 § 349
 § 8
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