Brewer v. Peterson
In Brewer v. Peterson, 9 Ariz. App. 455, 453 P.2d 966 (1969), the decedent gave $ 1.2 million in gifts to her nephew prior to her death. Id. at 456, 453 P.2d at 967.
The Internal Revenue Service found that the gifts were made in contemplation of death and were therefore subject to estate taxes. See id.
As a result, the estate taxes exceeded the value of the remaining assets of the estate. See id.
The decision is unclear as to whether the assets referred to were the assets remaining before or after creditors were paid.
However, because the court never refers to the estate as "insolvent" and estate taxes are generally calculated from the net estate after all debts are paid, the Court assumed that the assets to which the court referred were the assets that remained for additional bequests after creditors' claims were satisfied.