District of Columbia v. Fadeley

BURGER, Circuit Judge.

Ellen Fadeley died in April 1953 at age 84. Her executors reported on the federal estate tax return, a copy of which was filed with the District of Columbia inheritance tax return, two inter vivos gifts of $25,000 each which were made to decedent’s two grandsons in February 1952; the executors asserted these gifts, were not made in contemplation of death. The District of Columbia Assessor, however, held the gifts had been made in contemplation of death1 and assessed inheritance taxes against the two grandsons. Since decedent’s will directed that succession taxes be paid…