National Bank v. Department of Treasury

Should United States Treasury bonds which were redeemed at par value by an executor in payment of Federal estate taxes be appraised for Michigan inheritance tax purposes at par value *137or at the lower discounted price quoted in over-the-counter bond markets on or near the date of decedent’s death? This question has never been addressed in Michigan. Other jurisdictions are almost evenly divided in their answer thereto.

The facts are simple and undisputed. Daisy Gertrude McCornack died May 20, 1970, leaving an estate of approximately $1,300,000. Among the assets were certain low interest United…