John D. Rainey, a judge for the United States District Court for the Southern District of Texas, has decided in the favor of the Rayford Keller, plaintiff, in his case against the United States government. The plaintiff asserted that his party was entitled to an estate tax refund, and further tax deductions for various administrative costs. The disagreement over the refund stemmed from the nature of the partnership that was to be formed before the death of Rayford Keller's client, Mrs. Maude O'Connor Williams. Although all partnership procedures were not completed before Mrs. Williams' death, the district court found that Mrs. Williams had intended to fully complete the partnership agreement. Hence, the court granted the estate tax refund as well as further tax deductions due to certain administrative costs such as litigation fees and the like.
See Tax Analysts, "Court Orders Estate Tax Refund, Allows Deduction for Administrative Costs," 2009 TNT 162-3, August 20, 2009
Posted by Raj Chudgar, Associate Editor, Wealth Strategies Journal
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