In the case of Lober et al., Executors, v. United States in 1953, the U.S Supreme Court ruled on a dispute regarding estate taxes. The executors of an estate argued that certain charitable contributions should be deducted from the gross value of the estate before calculating federal tax liability. However, these contributions were made by exercising powers of appointment granted to them under wills and trusts established prior to September 8th, 1916 - which is significant because this date marks when Congress first imposed federal taxation on estates. The court held that such exercises did not qualify for deductions as they weren't part of decedent's gross estate according to Section 811(f) and (g) Internal Revenue Code provisions governing transfers taking effect at death or intended to take effect in possession or enjoyment at or after death respectively. Therefore, it was decided that these charitable donations could not be used as deductions from taxable income.

In the dissenting opinion for Lober et al., Executors, v. United States, Justice Jackson disagreed with the majority's interpretation of Section 811(c) of the Internal Revenue Code. He argued that this section was not intended to tax gifts made by a decedent in contemplation of death but rather to include in his gross estate transfers which are essentially testamentary - i.e., transfers which pass no substantial rights to transferees until after the donor's death. According to him, it is unjust and against legislative intent to impose an estate tax on property transferred three years before death when there were no strings attached or reversionary interests retained by the deceased person at all. The fact that these gifts might have been motivated by "a detached and disinterested generosity" should not be enough reason for them being taxed as if they were part of his estate upon death.