Bequests to the United States may be subjected to state inheritance taxes, such taxes, the courts, both state and federal, holding to be not upon the property bequeathed, but upon its transmission by will or by descent. "The legacy becomes the property of the United States only after it has suffered a diminution to the amount of the tax, and it is only upon this condition that the state legislature assents to a bequest of it." 38

Further, in Plumber v. Coler39 it was held that the state inheritance tax might be collected upon a bequest consisting of United States bonds issued under an act of Congress specifically declaring them to be exempt from state taxation in any form. After an exhaustive review of authorities the court say: "We think the conclusion fairly to be drawn from the federal cases is that the right to take property by will or by descent is derived from and regulated by municipal law; that, in assessing a tax upon such right or privilege, the State may lawfully measure or fix the amount of the tax by referring to the value of the property passing, and that the incidental fact that such property is composed, in whole or in part, of federal securities, does not invalidate the tax or the law under which it is imposed." In Murdnck v. Ward 40 it was held that a similar bequest of federal securities was not exempt from the inheritance tax imposed by the War Revenue act of Congress of 18-98.