James Clark McReynolds

“ Property of small value transferred before death may have become immensely valuable, and the estate tax, swollen by this, may leave nothing for distribution. Real estate transferred years ago, when of small value, may be worth an enormous sum at the death. If the deceased leaves no estate there can be no tax ”

“ That (in lieu of the tax imposed by title II of the Revenue Act of 1916, as amended, and in lieu of the tax imposed by title IX of the Revenue Act of 1917) a tax equal to the sum of the following percentages of the value of the net estate (determined as provided in section 403) is hereby imposed upon the transfer of the net estate of every decedent dying after the passage of this act, whether a resident or nonresident of the United States: 1 per centum of the amount of the net estate not in excess of $50,000 ”

“ To the extent of any interest therein of which the decedent has at any time made a transfer, or with respect to which he has at any time created a trust, in contemplation of or intended to take effect in possession or enjoyment at or after his death (whether such transfer or trust is made or created before or after the passage of this act) , except in case of a bona fide sale for a fair consideration in money or money's worth. (d) Any interest held jointly with another and payable to the survivor. (e) Property passing under a general power of appointment. ”

“ The deed directed that the interest of any child predenceasing the survivor should pass as provided by the statute of distribution 'in effect at the time of the death of such survivor.' The trustees were authorized to sell the property, to make and change investments, etc. April 6, 1917, the settlors assigned to the children their entire interest in the property, especially any right to the income therefrom. At the death of Mrs. Coolidge the trustees held property worth $432,155.35, but through sales and changes much of what they originally received had passed from their possession. ”

“ Any transfer of a material part of his property in the nature of a final disposition or distribution thereof, made by the decedent within two years prior to his death without such a consideration, shall, unless shown to the contrary, be deemed to have been made in contemplation of death within the meaning of this title ”

“ It taxes, as Hansen, Death Duties, puts it in a passage cited in 178 U.S. 49, 20 S.C.t. 751, 'not the interest to which some person succeeds on a death, but the interest which ceased by reason of the death. ”