Harper v. Commissioner
United States Tax Court
H died testate. Among the assets of her estate were notes executed by T and G and by G and his wife, some of which were secured by stock. The value of the stock plus the net worth of the makers was less than the face amount of the notes at time of H's death. Under will of H, T and G each became entitled to receive one-sixth of her residuary estate. Except for these inheritances, there existed no reasonable expectation that the makers of the notes could pay their obligations.
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H died testate. Among the assets of her estate were notes executed by T and G and by G and his wife, some of which were secured by stock. The value of the stock plus the net worth of the makers was less than the face amount of the notes at time of H's death. Under will of H, T and G each became entitled to receive one-sixth of her residuary estate. Except for these inheritances, there existed no reasonable expectation that the makers of the notes could pay their obligations. If inheritances are reflected in net worth of the makers, they become financially able to pay them. Respondent…
1Opinion of the Court
OPINION.
HaRlan, Judge:
The sole issue in this proceeding is whether the notes mentioned in our findings should be included in decedent’s gross estate at face value plus interest, as determined by the respondent, or whether they should be included at a value equivalent to the value of assets held as security therefor plus the net worth of the makers, as contended by petitioner.
The cases cited by the respondent in support of his determination are Buck v. Helvering, 73 Fed. (2d) 760; Estate of Henry Monroe Springer, 45 B. T. A. 561; Estate of Charles H. Lay, 40 B. T. A. 522; and Estate of Edwin…
2Cases cited3 opinions
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Walker v. CommissionerUnited States Tax Court · 1944
- Hodge v. CommissionerUnited States Tax Court · 1943
3Cited by10 opinions
- Goodman v. GrangerCourt of Appeals for the Third Circuit · 1957
- Coblentz v. Commissioner (In re Estate of McClatchy)United States Tax Court · 1996
- Goodman v. GrangerCourt of Appeals for the Third Circuit · 1957
- Estate of Henry Hauptfuhrer v. CommissionerUnited States Tax Court · 1950
- Farrell v. CommissionerUnited States Tax Court · 1949
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