Stegmaier Estate

Opinion by

Mr. Justice Eagen,

The issue herein is whether or not certain funds are subject to payment of the Pennsylvania Inheritance Tax.

The facts stipulated of record are these: William G. Daniels, an employee of the Commonwealth of Pennsylvania, retired on September 20, 1962. He died five days later before receiving payment of any benefits due him under the provisions of the State Employes’ Retirement Code, Act of June 1, 1959, P. L. 392, as amended, 71 P.S. §1725-101 et seq. Before his death, he designated three sisters, Florence C. Allen, Alice M. Daniels and *6May D. Stegmaier, as…