Magoon

The government has appealed from a judgment of the District Court of the United States for the Territory of Hawaii in favor of appellees in the sum of $25,311.74 in an action to recover an overpayment of federal estate taxes upon the estate of Bernhard R. Banning, deceased.

Bernhard R. Banning, a resident of Honolulu, died testate on or about April 27, 1923. The appellees and Mr. O. P. Soares were named as executors in the will, and letters testamentary were then duly issued. Said executors filed within due time with the Collector of Internal Revenue for the Territory of Hawaii a return for the purpose of a federal estate tax, showing a total net estate of $1,096,483.36. The Commissioner of Internal Revenue upon final audit in review of this estate tax determined that the total net value of decedent’s estate was $1,184,943.66, and that the total tax due was $69,458.50. This tax was paid by the executors as follows: $24,485.25 on May 31, 1924; $35,663.09 on July 26, 1924; and $8,310.16 on April 16, 1926.

On or about January 30, 1925, the local probate court approved the accounts of the executors and discharged them, distributing the residuary estate in the hands of the executors…