TAXATION-CONSTITUTIONALITY OF A CONCLUSIVE PRESUMPTION THAT A TRANSFER EXECUTED WITHIN A LIMITED PERIOD BEFORE DEATH IS MADE IN CONTEMPLATION OF DEATH

Authors

Abstract

Motion for a refund was made by the plaintiff on the ground that certain transfers made within two years preceding the death of the decedent should not have been taxed under the federal estate tax since they were not in fact made in contemplation of death. The defendant filed a demurrer on the ground that under the provisions of sec. 302 (c) of the Revenue Act of 1926, such transfers were taxable regardless of the motive impelling them. The section reads: "Where within two years prior to his death . . . and without such a consideration the decedent has made a transfer . . . and the value . . . is in excess of $5,000, then, to the extent of such excess, such transfer . . . shall be deemed and held to have been made in contemplation of death within the meaning of this chapter." Held, in Heiner v. Donnan, that this section of the act establishes a conclusive presumption which is void under the due process clause of the Fifth Amendment.

Recommended Citation

TAXATION-CONSTITUTIONALITY OF A CONCLUSIVE PRESUMPTION THAT A TRANSFER EXECUTED WITHIN A LIMITED PERIOD BEFORE DEATH IS MADE IN CONTEMPLATION OF DEATH, 31 Mich. L. Rev. 135 (1932).
Available at: https://repository.law.umich.edu/mlr/vol31/iss1/28