United States v. Cartwright
Supreme Court of the United States
United States v. Cartwright, Executor
Certiorari to the United States Court of Appeals for the Second Circuit
No. 71-1665. Argued: January 16, 1973 --- Decided: May 7, 1973
Shares in mutual funds can be "sold" by the shareholder only back to the fund and only at a set redemption price. Treas. Reg. § 20.2031-8 (b), requiring that such shares be valued for federal estate tax purposes at the current public offering ("asked") price, which is determined by adding a load or sales charge to the net asset value, is clearly inconsistent with the Investment Company Act of 1940, and is therefore invalid. Pp. 550-557.
457 F.2d 567, affirmed.
WHITE, J., delivered the opinion of the Court, in which DOUGLAS, BRENNAN, MARSHALL, BLACKMUN, and POWELL, JJ., joined. STEWART, J., filed a dissenting opinion, in which BURGER, C.J., and REHNQUIST, J., joined, post, p. 557.
Solicitor General Griswold argued the cause for the United States. With him on the brief were Assistant Attorney General Crampton, Richard B. Stone, Loring W. Post, and David English Carmack.
Ralph J. Gregg argued the cause for respondent. With him on the brief was George M. Zimmermann.[1]
- ↑ Meyer Eisenberg and Robert L. Augenblick filed a brief for the Investment Company Institute as amicus curiae urging affirmance.