Spicer v. United States

This is a suit to recover $208,285.54 in income taxes paid on a long term capital gain realized from the sale of assets held in trust. The precise question to be decided by the court is whether or not gifts made in contemplation of death which are included in a decedent’s gross estate for estate tax purposes under section 811 (c) of the Internal Revenue Code of 1939 are entitled to the use of the stepped-up basis pro*729vided for in section 113 (a) (5) of the Code upon a sale by the donee.

Plaintiffs were trustees under an irrevocable trust created by one Ora J. Mulford, sometimes hereinafter…