- 5 - The issues remaining3 for us to decide are as follows: 1. Whether any portion of the $750,000 settlement Eckell, Sparks paid to the administrators pro tem. and the residuary beneficiaries of decedent’s estate (the Glovers) should be allocated to (a) the value of the estate’s claim for the $247,500 of legal fees that the Orphans’ Court ordered Eckell, Sparks to return to decedent’s estate and/or (b) to the value of the claims the Glovers made against Eckell, Sparks, with the consequences that the amount of any such allocation is not included in the value of decedent’s claim against Eckell, Sparks on the date of her death. 2. If we determine that no portion of the $750,000 settlement is allocable to the Glovers’ claims, then whether that portion (60 percent) of the $750,000 Eckell, Sparks settlement that was distributed to the Glovers is a deductible expense in determining decedent’s taxable estate. 3 In its answering brief, decedent’s estate: a. Conceded that attorney’s fees of $247,500 paid to the law firm of Eckell, Sparks, Monte, Auerback & Moses that the Orphans’ Court ordered be returned to decedent’s estate are not deductible as administrative expenses pursuant to sec. 2053(a)(2). b. Failed to address and, therefore, is deemed to have conceded that commission of $250,000 paid to Madelyn M. Hurley, the original executrix of decedent’s estate, is not deductible as an administrative expense pursuant to sec. 2053(a)(2) nor deductible as a theft loss pursuant to sec. 2054.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011