- 3 -
the proceeding; and (6) the amount of costs is reasonable.
Failure to meet any of the above-listed requirements will defeat
the recovery of litigation costs.
Respondent contends that the estates are not entitled to
litigation and administrative costs because respondent’s position
was substantially justified. In the alternative, respondent
contends that the estates’ attorney’s fees exceed the limits set
forth in the statute and are, therefore, not reasonable. On the
other hand, the estates contend that respondent’s position was
not substantially justified and/or that the amounts claimed are
reasonable.
Background
John L. Baird and Sarah W. Baird were married and died
within 1 year of each other. John’s and Sarah’s estates each
contained a similar (14/65 and 17/65, respectively) fractional
undivided interest in a family trust. The trust property
consisted of 16 parcels of real property and was held in
undivided ownership by family members related to the decedents.
On March 18, 1996, John’s estate tax return was filed with
his 14/65 undivided community property interest reported at a
value of $707,972. In support of that value, John’s estate
attached an appraisal opinion to the return. The appraisal
contained opinions as to the fair market value of the 16 parcels
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011