In the United States v. Cook, Executor of Eames et al., 1921 case, the Supreme Court ruled on a dispute over inheritance tax. The decedent had transferred bonds to his wife before death without consideration and retained income from them for life. After his death, these were not included in gross estate valuation by executors but were later added by Commissioner of Internal Revenue which increased the estate's value significantly leading to higher taxes. The executor contested this addition arguing that since they weren't part of the decedent's property at time of death as per state law (Illinois), they shouldn't be taxed under federal law either. The court held that while state laws determine property rights, what is subject to federal taxation is determined by Congress' power under Constitution irrespective of those rights or their transferability according to state laws. Thus it upheld inclusion and subsequent taxation ruling against executor’s contention.

The dissenting opinion in the United States v. Cook case argued that the majority's decision to allow a tax on an estate before it had been fully administered was premature and potentially harmful. The dissenters believed that until an estate has been completely settled, including paying off all debts and distributing assets to heirs, it is impossible to accurately determine its value for taxation purposes. They also expressed concern about the potential for double taxation if future adjustments were made to the estate after initial taxes had already been paid based on preliminary estimates of its worth. Furthermore, they disagreed with imposing a tax burden on executors who are merely temporary custodians of an estate rather than beneficial owners. In their view, this could discourage individuals from serving as executors due to fear of personal financial liability.