Estate of Austin

This case involves the state inheritance tax which is no longer in existence. Kathleen S. Austin died November 7, 1980, before the effective dates of law changes concerning the state’s inheritance tax making the tax inapplicable to transfers between spouses (Jan. 1, 1981; Stats. 1980, ch. 634, § 46, p. 1760; see Estate of Nicoletti (1982) 129 Cal.App.3d 475, 478-483 [ 181 Cal.Rptr. 137 ]) and repealing the tax altogether (adopted at Gen. Elec, of June 8, 1982, initiative measure; Stats. 1982, ch. 1535, § 14, p. 5974; see Estate of Gibson (1983) 139 Cal.App.3d 733, 736 [ 189 Cal.Rptr. 201 ]).

In the calculation of the inheritance tax, a December 3, 1986, report of the inheritance tax referee included the value of pension and profit-sharing plans established by the professional corporation of Arthur L. Austin, D.D.S., Kathleen’s surviving spouse. Arthur, executor of Kathleen’s estate, objected to the report. On September 9, 1987, the probate court entered its order fixing inheritance tax, excluding the total value of the pension and profit-sharing plans. In so ruling the probate court relied on Estate of Allen (1980) 108 Cal.App.3d 614, 617-621 [ 166 Cal.Rptr. 653 ],…