Lentini v. Department of Treasury

The question presented is whether annual installments of a Michigan state lottery prize, unpaid at the winner’s death, are exempt from the inheritance tax1 under a provision of the *553Lottery Act2 providing that no state or local tax "of any kind whatsoever shall be imposed upon the proceeds from a prize” awarded by the state lottery. We hold that state lottery prize proceeds, including the right to transfer and receive an inheritance of such proceeds, were so exempt.

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Rose D’Amico won a state lottery prize entitling her to $1,000,000 payable in twenty annual installments of $50,000. Fourteen…