In re the Estate of Moody

This case concerns the inheritance tax consequences of gifts made in contemplation of death. The facts are not in dispute. In 1972, Ruth Moody made two gifts of stock for which she paid state and federal gift taxes in 1973. Subsequent to her death in 1974, it was ascertained that additional state and federal gift taxes were owing with respect to the gifts. These taxes were paid by the estate.

For purposes of this litigation, it was stipulated that the gifts were made in contemplation of death and that the amounts of the gifts were therefore properly includable in the estate inventory for state…