Robert C. Kirkwood, Controller of the State of California v. Lee Arenas, Richard Brown Arenas and United States of America

The basic issue on this appeal is whether, upon the death of a member of the Agua Caliente Band of Mission Indians, the transfer of the member’s trust allotment to his heirs is subject to an inheritance tax by the State of California. The problem arises because of the following facts.

Appellee, Lee Arenas, was married to Guadalupe Rice Arenas, and during their marriage, both applied for trust allotments on lands in and near the resort city of Palm Springs, California, in accordance with the Mission Indian Act of 1891. Selections were made by them in 1923 and 1927. See Arenas v. United States, 322 U.S. 419 , 64 S.Ct. 1090 , 88 L.Ed. 1363 . Litigation ensued, and it was not until February 24, 1949, that trust patents were issued. Because Guadalupe had died intestate on March 26, 1937, her trust patent was issued to her unnamed heirs and devisees. The patent was issued nunc pro tunc May 9, 1927, in accordance with Arenas v. United States, 9 Cir., 1946, 158 F.2d 730 , certiorari denied, 1947, 331 U.S. 842 , 67 S.Ct. 1531 , 91 L.Ed. 1853 .

Guadalupe’s interest passed one-half to appellee, Lee Arenas, and one-half to her daughter, Eleuteria Brown Arenas. Arenas v. United States, 9…