F. Lee Robinson, of the Estate of Fred L. Robinson, Deceased v. United States

Fred L. Robinson died testate, his will directing that “all my just debts and funeral expenses be fully paid and satisfied.” No provision in his will specifically named a source from which federal estate taxes were to be paid; indeed, taxes were never mentioned at all.

The will further provided:

The widow’s one-third qualified for the marital deduction, Internal Revenue Code of 1954, § 2056, which meant that her share did not generate any federal estate tax.

F. Lee Robinson, as executor for the estate of Fred L. Robinson (the Estate), filed a federal estate tax return on which the amount of the marital deduction was computed as a flat one-third of the residuum. The Commissioner of Internal Revenue reduced the amount of the marital deduction by one-third of the federal estate tax and by the net Montana inheritance tax charged to the property passing to the widow. The result of the decrease in the marital deduction amount was to increase the amount of the taxable portion of the estate. The Commissioner therefore assessed a deficiency. The Estate paid the deficiency, and then filed a claim for refund. The district court denied the claim, and the Estate appeals. We…