Ramsay Estates

Opinion by

Mr. Justice Stern,

William Ramsay, his brother Robert, and their sister Margaret Ramsay Jones each owned $50,000 par value of bonds — in all respects identical — of the Alabama By Products Corporation. By an arrangement, apparently designed to escape inheritance taxation, each of these persons, on May 31, 1932, executed an irrevocable deed placing his or her bonds in trust with the .First National Bánk and Trust Company of Greensburg, Pennsylvania. In the deed in which William was the donor the net income of his bonds was to be paid to Margaret for life, and at her death the…