- 5 -
hired Christy, Hinz knew the estate tax return was due 9 months
from the date of decedent’s death.
Christy had been licensed to practice law in California
since 1949--he had considerable experience handling probate and
estate matters, but had filed only 12 to 15 Federal estate tax
returns. The record does not indicate whether Christy had done
any work in connection with the estates of decedent’s husband,
who died in 1960, or decedent’s daughter.
On June 11, 1992, Christy filed with the Superior Court for
Santa Clara County a petition on Hinz’s behalf for the probate of
decedent’s estate. The petition for probate listed seven real
properties4 and estimated their aggregate value as $1,100,000.
The $1,100,000 amount was based on the Santa Clara County
Assessor’s records. On July 29, 1992, the Superior Court
appointed Hinz as executor of decedent’s estate. Before the
estate tax return was due, Christy advised Hinz that the estate
could receive an extension of time in which to file its estate
tax return. Hinz did not ask Christy what the extended due date
would be.
4 The parties have stipulated to the fair market values of two
of these seven properties. Two of the remaining five parcels are
dealt with as one property, infra, the Lafayette Property. As a
result, the parties have presented the valuations issue as
dealing with four properties.
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Last modified: May 25, 2011