University of Louisville v. Liberty National Bank & Trust Co.

CULLEN, Commissioner.

The circuit court entered a judgment holding that the Federal estate taxes and Kentucky inheritance taxes assessed against the estate of Harry R. Kettig, deceased, should be paid “off the top” of the estate rather than proportionally out of each bequest that contributed or added to the tax liability. The result of the holding was to decrease substantially residuary bequests for certain educational, religious and charitable purposes. The recipients of the latter bequests have appealed, maintaining that since the bequests to them did not create any of the tax liability they…