Estate of Rose B. Posner, Deceased, David B. Posner, Personal Representative - Page 8

                                        - 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