Rachel H. Ingalls v. Commissioner of Internal Revenue

Is taxpayer entitled to restoration of all or any part of her gift tax specific exemption used against half of $150,-000.00 of gifts made by her husband in 1957 when $75,000.00 was later determined by the Commissioner to have been made in contemplation of death? The Tax Court answered negatively. We agree.

Shortly before his death, Fay Ingalls made gifts totaling $150,000.00 to his four children and ten grandchildren. Under the provisions of Section 2513 of the Internal Revenue Code of 1954 (26 U.S.C.A. § 2513), Rachel Ingalls (the taxpayer and surviving widow) and the Estate of Fay Ingalls…