Third National Bank v. Olsen

OPINION

HARBISON, Chief Justice.

This case involves the valuation of certain United States treasury bonds, popularly known as “Flower Bonds,” for purposes of the Tennessee Inheritance Tax, T.C.A. § 30-1601 to 1641.

Decedent died on February 3, 1979. A few weeks prior to his death he had purchased the bonds in question which had a face or par value of $2,500,000. The bonds were redeemable and were in fact redeemed at par or face value for purposes of federal estate taxation. On the alternate valuation date chosen by the Executor the bonds were quoted on the open market at $2,062,500. The Executor…