Kent Robinson v. The United States of America

Kent Robinson (Robinson) appeals from a judgment of the United States District Court, 454 F.Supp. 1160 , for the Northern District of California denying his claim for the refund of federal estate taxes which he paid as Executor of the estate of his mother, Hazel S. Robinson (Decedent). We affirm.

Background

Robinson’s mother died in San Francisco on November 13, 1968. Robinson filed a federal estate tax return on February 13, 1970. On audit, the Internal Revenue Service determined and assessed additional tax liability of $22,824.90 plus $3,513.78 interest. Robinson paid the assessment on September 18, 1972. The additional tax liability was assessed under 26 U.S.C. § 2037 (1976) and resulted from the inclusion in Decedent’s taxable estate of the value of a trust created by her on February 11, 1920, in which she reserved to herself a conditional testamentary power of appointment.

Following Treasury Regulations 20.2031-7(a)(2), (e), and using United States Life Table 38 provided therein, the Commissioner determined the value of Decedent’s reserved power of appointment, classified as a “reversionary interest” under § 2037(b)(2), to be 8.47% of the value of the trust corpus. Because…