In Re Estate of Dehgani-Fard

Holland & Knight; Luce Forward, Hamilton & Scripps, John T. Rogers, Jr., Nelson J. Handy, Los Angeles, and Stacie Polashuk Nelson, for Claimant and Appellant.

No appearance for Petitioner and Respondent and for Objectors and Respondents Jacob Dehgani and Farhah Moallem.

Morris & Associates, James G. Morris and Phunphilas Viravan, Sherman Oaks, for Objector and Respondent Craig Schauer.

EPSTEIN, P.J.

The Regents of the University of California challenges the order of the Probate Court allocating to the University of California, Los Angeles (UCLA) a portion of the liability for income tax, and interest on unpaid income tax, paid by the Estate of Foad Dehgani Fard on after-discovered assets. [1] Appellant claims that it should not be liable for any portion of the income tax liability because as an educational institution, UCLA is a charitable organization exempt from income taxation on its share of the assets, and that in its tax returns, the estate claimed and received a partial exemption based on UCLA's charitable status. We agree, and reverse the order.

Foad Dehgani-Fard died in 1990, leaving an estate in excess of $1,000,000. Following a will dispute, a settlement was…