- 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