Rev. Rul. 54-399

Dividends declared on shares of stock prior to the death of the decedent but payable to stockholders of record on a date after his death are not includible in his gross estate for Federal estate tax purposes. However, in a case where the stock is being traded on an exchange and is selling ex-dividend on the date of the decedent's death, the amount of the dividend should not be included in the gross estate as a separate item but should be added to the ex-dividend quotation in determining the fair market value of the stock as of the date of the decedent's death. See Estate of George McNaught Lockie v. Commissioner , 21 T.C. 64, acquiescence, C.B. 1954-1, 5.