National Bank of Detroit v. Department of Treasury

Blair Moody, Jr., J.

(for affirmance). We granted leave to appeal to consider whether certain United States Treasury bonds, which were redeemed at par value by an executor in payment of Federal estate taxes, should be valued for Michigan inheritance tax purposes at par value or at the price quoted in the over-the-counter bond market on the date of decedent’s death.

We determine that for purposes of the Michigan inheritance tax, the bonds should be appraised at par value to the extent they are used to pay Federal estate taxes. We, therefore, would affirm the Court of Appeals.

Facts

On Saturday,…