PERSONAL PROPERTY-UNITED STATES SAVINGS BONDS--EFFECT OF REGISTRATION IN CO-OWNERSHIP OR BENEFICIARY FORM AS A TRANSFER OF A PROPERTY INTEREST THEREIN

In two recent cases, decedents purchased United States Savings Bonds registered in the name of the purchaser and another person which were never delivered to the named co-owner but remained in the possession of the purchaser until his death. In the first case, on appeal from an order of the district court refusing to impose an inheritance tax on the bonds after the death of the purchaser, held, reversed. Mere purchase of the bonds and their registration in the names of the co-owners without delivery transferred no interest to the co-owners during the life of the purchaser and is taxable as a testamentary transfer. In re Brown's Estate, (Mont.

1949) 206 P. (2d) 816.