Kirkwood v. Simpson

The Controller of the State of California appeals from an order of the probate court sustaining respondent’s objections to the corrected inheritance tax report, which subjected certain death benefits paid to respondent under the Los Angeles County Employees’ Retirement System to inheritance tax. The court held that such payments were exempt from the tax. (Gov. Code, § 31452.) Appellant challenges the propriety of that decision and in onr opinion, his objection must be sustained.

William E. Simpson and Ethel M. Simpson were married December 31, 1912, and were husband and wife at the time of Mr. Simpson’s death on April 28, 1951. For many years preceding his death, Mr. Simpson was an employee of the county of Los Angeles and a member of the Los Angeles County Employees’ Association. Pursuant to the County Employees’ Retirement Law of 1937 (now Gov. Code, pt. 3, §§ 31451-31794), he had made contributions to the association’s retirement fund between August 1, 1940, and March 31, 1951. On July 9, 1940, he had designated his wife as the beneficiary to receive the death benefits under the act. (Gov. Code, § 31780.) Upon his death she received the sum of $15,856.26 (Gov. Code, §§…