Davis

Non-jury trial has been concluded in this civil action against the United States for the recovery of estate taxes alleged to have been erroneously and illegally collected, jurisdiction existing by virtue of 28 U.S.C. § 1346 (1962). The Court, having heard full arguments and having considered the points and authorities submitted by counsel for both parties, now renders its decision.

At the time of the death of Decedent, Isabelle Mildred Davis on March 29,1965, she and her husband held joint tenancy ownership in a modest accumulation of property. On June 23, 1966, the husband, as surviving joint tenant and statutory executor of his wife’s estate, filed an Estate Tax Return Form 706 which, as part of the assets of the estate held in joint tenancy, listed 9,518 shares of Affiliated Fund, Inc., an open-end investment company.

The capital stock of Affiliated Fund, Inc. is offered by the investment company to the public at a price per share determined twice daily and based upon the total market value of the portfolio securities owned by the Fund. The actual offering price to the general public is the net asset value per share, plus a sales commission which is a varying percentage of…