In the 1941 case of Riley et al., Executors, v. New York Trust Co., Administrator, et al., the U.S. Supreme Court dealt with a dispute over estate taxes. The decedent had transferred securities to his wife during their marriage but retained control and income from them until his death. After he died, these securities were included in his gross estate for federal tax purposes by the Commissioner of Internal Revenue under Section 302(c) of the Revenue Act of 1926 which states that any property or interest therein transferred by a decedent while living is considered part of their gross estate if they retain possession or enjoyment at time of death. The executors challenged this decision arguing that since there was no transfer intended to take effect at or after death as required by Section 811(c) (now section 2038), it should not be taxed as part of the deceased's gross estate. However, on appeal to higher courts including finally reaching Supreme Court level, it was held that despite lack explicit language stating so in law text itself - such transfers where donor retains life-long benefits are indeed taxable upon donor's demise because they essentially equate to transfers taking place posthumously hence falling within purview outlined under aforementioned revenue act provision.

In the dissenting opinion for Riley et al., Executors, v. New York Trust Co., Administrator, et al., Justice Frankfurter disagreed with the majority's decision to uphold a lower court ruling that allowed a trust company to claim assets from an estate. He argued that this interpretation of the law was incorrect and would lead to unjust results in future cases. Specifically, he contended that allowing creditors such as trust companies to make claims on estates before other beneficiaries could result in those beneficiaries receiving less than they were entitled to under the terms of a will or trust agreement. Furthermore, he expressed concern about potential abuses by creditors who might take advantage of this rule at the expense of rightful heirs or legatees.