Estate of Desmond

California Court of Appeal Aug 31, 1973 No. Docket Nos. 40535, 40938Published

Before: Fleming

AI Brief

AI-generated · verify before citing

Holding. The court held that payments made to settle a will contest and related legal expenses are not deductible from an estate's value for inheritance tax purposes, as they do not fall within the specific statutory categories of allowable deductions. Furthermore, inheritance tax liability is fixed at the time of death based on the original disposition of the estate, and private settlement agreements cannot alter the state's right to collect such taxes.

Issues

Whether the probate court erred by failing to make findings of fact when denying a petition to modify an inheritance tax order.
Whether payments made to settle a will contest are deductible as debts of the estate for inheritance tax purposes.
Whether legal and administrative expenses incurred during a will contest are deductible as ordinary expenses of administration.
Whether a petition in equity can set aside an inheritance tax order based on an alleged understanding between parties that the tax would be redetermined.

Disposition. affirmed

Quotations verified verbatim against the opinion

“Agreement among heirs cannot change the right of the state to the inheritance tax, nor does it change the basis upon which the tax is computed.”

“The expenses claimed by appellants fall within none of the authorized categories of deductions.”

34 Cal.App.3d 139 (1973) 109 Cal. Rptr. 50 Estate of CORA F. DESMOND, Deceased.

PAULINE ROBINSON ROSSO, as Co-executrix, etc., et al., Petitioners and Appellants,

HOUSTON I. FLOURNOY, as State Controller, Defendant and Respondent.

Docket Nos. 40535, 40938. Court of Appeals of California, Second District, Division Two.

August 31, 1973. [141] COUNSEL

Eugene L. Wolver for Petitioners and Appellants.

Myron Siedorf, Walter H. Miller and Bettina A. Bate for Defendant and Respondent.

OPINION

FLEMING, J.

Appeals from orders denying modification of inheritance tax and dismissing a "petition in equity" for modification of inheritance tax.

Cora Desmond died in April 1964 leaving an estate valued at $500,000.[1] A will which left the bulk of the estate to Pauline Rosso, Olga Robinson, and their close relatives was admitted to probate. In January 1965 the probate court approved an order fixing inheritance tax based on a valuation of $500,000. Meanwhile, in December 1964 three Wisconsin religious institutions petitioned for revocation of probate of the will, and in May 1965 filed for probate as a last will an earlier will that had left the bulk of the estate to the religious institutions. In September 1968 the probate court approved an agreement between the contending parties, under which the contested probate of the admitted will was dropped, and $180,000 was paid out of the estate to the religious institutions. The probate court also approved payment from the estate of $120,000 for administrative and legal fees incurred in connection with the will contest and settlement.

In July 1970 Rosso and Robinson, as executors of the estate under the now-unchallenged will, petitioned for modification of the order fixing inheritance tax,[2] and requested that the value of the estate be reduced by $300,000, the amount paid out in connection with the will contest and

Estate of Desmond

AI Brief

OPINION

FLEMING, J.

More from California Court of Appeal

Related research

NOTES

AI Brief