The Shukert et al., Executrices, v. Allen, Collector case in 1926 revolved around the issue of estate tax liability. The executors of a deceased individual's estate contested that certain property transferred by the decedent prior to his death should not be included in the gross estate for federal taxation purposes. They argued that these transfers were bona fide sales for an adequate and full consideration in money or money’s worth, thus exempting them from inclusion under Section 402(c) of the Revenue Act of 1918. However, it was determined by lower courts and affirmed by the Supreme Court that these transactions lacked genuine considerations as they were essentially testamentary dispositions made with contemplation of death rather than legitimate business transactions. Therefore, their value was correctly included within taxable gross estate according to applicable law at that time.

In the dissenting opinion for Shukert et al., Executrices, v. Allen, Collector (1926), Justice Holmes argued that the estate tax should not be applied to property transferred before death but intended to take effect upon death. He believed this interpretation was consistent with both the language and intent of Congress when it passed the Revenue Act of 1918. According to him, if a person transfers their property during their lifetime without any conditions or reservations attached, then such transfer is complete and irrevocable; thus it cannot be considered part of their gross estate after they die. Therefore, he disagreed with majority's view that these types of transfers were subject to taxation under federal law as part his/her gross estate at time of death.