Skaggs v. Yunck

The issue is whether the executrix of the estate of Lucy A. Hoak, deceased, must pay, out of the “probate estate,” all federal estate taxes attributable to decedent’s “taxable estate.”

Lucy A. Hoak’s taxable estate, for purposes of federal law, is composed of: (1) her “probate estate,” i.e., that property that passed under the terms of her will; and (2) her “non-probate estate,” i.e., that property conveyed by inter vivos gifts, plus the property that passed under the terms of an inter vivos trust.

Petitioners received inter vivos gifts from Lucy A. Hoak, and became beneficiaries under the…