- 8 -
By order dated June 30, 1999, the Maryland Court of Appeals,
Maryland’s highest court, declined to hear the appeal of the
court of special appeals’ decision.
The Estate’s Federal Estate Tax Return
While the above-described litigation was pending, David, as
personal representative of decedent’s estate, filed a request for
an extension of time to file the estate’s Federal estate tax
return and remitted estate tax of $6.5 million. On July 30,
1998, notwithstanding the uncertainty of the outcome of the State
court litigation, David filed the estate’s Federal estate tax
return, wherein the marital trust property was included in
decedent’s gross estate.5
On July 12, 2000, the estate filed a claim for an estate tax
refund of $2,909,000, on the ground that the litigation in the
Maryland State courts had proved the inclusion of the marital
5 These actions triggered more litigation. In July 1999,
the daughters filed a complaint in the Circuit Court for
Baltimore City, Md. (Baltimore City circuit court), against David
and the trustee of the marital trust. They sought declaratory
relief, asking the court to rule that David was not entitled to
claim any contribution from the marital trust for the estate
taxes he had paid. On cross-motions for summary judgment, the
Baltimore City circuit court held that decedent’s three children
had to bear responsibility for the estate taxes paid on the
marital trust assets and that any future IRS refund of these
taxes should be distributed equally among decedent’s three
children. Gordon v. Posner, No. 24-C-99-03489 (Baltimore City
Cir. Ct. Oct. 24, 2000). The court of special appeals affirmed
this decision. Gordon v. Posner, 790 A.2d at 675. By order
dated Jan. 31, 2002, the Maryland Court of Appeals declined to
hear the appeal of the court of special appeals’ decision.
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