Estate of McDonald

—Donald S. Bond (Bond), executor of the Estate of Mima MacArthur (Mima), appeals from a portion of a judgment ordering proration of federal estate tax, California inheritance taxes and appraiser’s fees against Mima.

Pacts

Mima and Jane McDonald (Jane) were life-long friends. Until her death, Jane resided in a house owned by Mima in Solana Beach. On or about May 3, 1961, Jane transferred, without consideration, 724 shares of American Telephone and Telegraph stock to herself and Mima as joint tenants. By a writing dated May 3, 1961, they agreed to provide in their respective wills that on the death of the survivor the stock would be bequeathed to the Paradise Valley Hospital in National City.

Jane died testate on February 15, 1964, in San Diego. Her last will, dated June 27, 1963, was admitted to probate. Mima, who had been named as executrix, was issued letters testamentary on March 3,1964. Mima died on September 19,1965, as a resident of New Jersey. Bond, of Trenton, New Jersey, was duly appointed executor of her estate.

A. Morgan Jones, who drafted Jane’s will and had been named as successor-executor, was issued letters testamentary in Jane’s estate on December 13,1965.

The…