Cory

On appeal by the State Controller from an order fixing inheritance tax, we consider the question of the proper computation for inheritance tax purposes of the survivor’s contribution to acquired joint tenancy property under section 13671 of the Revenue and Taxation Code. For the reasons which we explain, we conclude the trial court erred in fixing the survivor’s contribution at one-half of the value of the property.

The facts are uncontroverted. Rose Flagg and her husband purchased the subject residential property in 1957 for the sum of $16,500; a down payment of $12,500 was made and their daughter, Frances (who lived with her parents), agreed to make the monthly payments on the unpaid balance of $4,000.

Rose Flagg became sole owner as surviving joint tenant upon her husband’s death later that year. In 1960, decedent created a joint tenancy in the property with Frances in recognition of the latter’s discharge of the monthly loan payments.

Frances continued to live in the family residence with her mother and paid property taxes, insurance, maintenance costs and repairs, as well as other financial support for her mother. Frances understood that she would succeed to…