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The gross estate of the decedent shall be valued as of the date of his death, and shall include whatever interest he had at that time in property, real or personal, tangible or intangible:

(a) which is subject to the charges against his
estate, including the expenses of admin-
istration, and which is subject to distri-
bution as a part of his estate;

(b) which was held jointly, or as tenants in the
entirety, by the decedent and any other
person, or deposited in banks or other insti-
tutions in their joint names and payable to
either or the survivor, except such part
thereof as may be shown to have originally
belonged to such other person and never
to have belonged to the decedent.

Gifts or trusts created in contemplation of death are also considered in respect to gross estate. Excepting only in the case of a bona fide sale for value (according to the Statute “a fair consideration in money or money's worth"), the gross estate shall include any interest therein of which the decedent has made a transfer at any time, or with respect to which he has created a trust, either in contemplation of death or intended to take effect in possession or enjoyment at or after his death. In this connection it is apparently provided by the Statute that the burden is fixed upon the representative of an estate to prove that a transfer by the decedent was not made in contemplation of death

Gross

Estate

Defined

Gifts in Contemplation of Death

In Respect

to Nonresidents

Bonds in

Estates

(a) If the transfer was effected within two years prior to the decedent's death;

(b) if a fair consideration was not received for such transfer, in money or money's worth; and,

(c) if the transfer consisted of a material part of the decedent's property in the nature of a final distribution thereof.

The provision of the Statute in relation to the transfer of property or the creation of a trust in contemplation of death appears to be so applied to a non-resident estate that such property shall be deemed to be within the United States and thus subject to the provisions of the Act if the property was physically located here either at the time of transfer or creation of the trust, or at the decedent's death.

It seems to be a proper assumption from the Non-resident Statute that American corporate and municipal bonds or like obligations owned by a nonresident at the time of his death shall not be subject to tax hereunder if such bonds or other evidences of indebtedness were physically outside of the United States on the date of the decedent's death. As to bonds thus owned and physically located within the United States on the date of the decedent's death, it seems likely, although not entirely certain, that the taxes hereunder would be applicable. It is

provided by the Statute that the stock of domestic corporations owned and held by a nonresident decedent shall be considered property within the United States and thus taxable hereunder.

The value of the net estate of a resident decedent is determined by deducting from his gross estate as hereinbefore defined:

(a) An exemption of $50,000; and,

(b) Funeral expenses, administration expenses,
claims against the estate, unpaid mortgages,
losses incurred during the settlement of
the estate arising from theft and from fires
or other casualty when such losses are not
compensated for by insurance or otherwise,
support of decedent's dependents during the
settlement of the estate; also such other
charges as are allowed by the laws of the
jurisdiction under which the estate is being
administered, whether within or without
the United States.

The value of the net estate of a non-resident decedent is determined by deducting from his gross estate situated within the United States such a proportion of the deductions permitted to resident decedents noted under "b" above, as the value of the decedent's gross estate in the United States bears to the value of his gross estate wherever situated. It should be here remarked, however, that in order to have the benefit of these deductions, the representative of the estate shall include in his return to the Collector the value of the non-resident decedent's gross estate at the time of his death

Stock So

Held

Net Estate

of Resident

Net Estate

of Nonresident

Returns

By Whom
Filed

Details of
Returns

whether situated within or without the United States.

Returns are required by the Statute in respect to the following:

(a) Resident estates subject to tax hereunder; (b) Resident estates exceeding $60,000 value as to the gross estate at the time of the decedent's death;

(c) Non-resident estates, any part of which is situated in the United States.

Such returns as are required to be made in be-
half of estates shall be executed under oath and
shall be filed in duplicate with the proper Col-
lector of Internal Revenue at times and in form
as prescribed by the Treasury Department.
The details of such returns include:

(a) Value of the gross estate at the date of
decedent's death; or, in the case of a non-
resident, that part of his gross estate situ-
ated in the United States. (It will be
recalled from the above comments that
deductions allowed by the Statute may not
be availed of by a non-resident estate unless
the return herein mentioned shall include
the gross estate of the decedent, situated
within and without the United States);
(b) Deductions hereinbefore mentioned, such
as expenses of administration, etc.;

(c) Value of net estate;

(d) Tax paid or payable thereon.

The filing of supplemental data is allowed as it is recognized that the representative of the estate may have only partial information at the time he is required to file his return. In case of inability to make a complete return as to

any part of the gross estate, the representative should include in his return a description of such part of the estate and the name of every person holding a legal or beneficial interest therein. Persons holding such an interest are required to make a return thereof when so notified by the Collector of Internal Revenue.

Returns shall be filed with the Collector of Internal Revenue of the district in which the decedent had his domicile at the time of his death. If such decedent was not domiciled in the United States the return shall be made to the Collector of the district in which his property in the United States is located; or, if such property is located in more than one district, then to the Collector of Internal Revenue at Baltimore, Maryland. The Treasury Department will probably rule as to the proper Collector in the case of a non-resident decedent whose sole property taxable hereunder is stock in an American corporation; the Collector at Baltimore may be chosen for this purpose.

The Collector of Internal Revenue or his deputy shall make return for the estate in case no administration is granted; likewise if no return is filed, or if the return contains a false or incorrect statement of a material fact.

It is provided by the Act that the Executor or other representative of the estate "within thirty days after qualifying as such, or after coming into possession of any property of the

Where Filed

Return by Collector

Notice
Required

of Estate's
Representative

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