Robert L. Phinney, District Director of Internal Revenue v. Milton Kay and Bernard Kay, as Executors of the Estate of Sarah Kay Rosenman

JONES, Circuit Judge.

This case involves the question of the extent to which the estate of Mrs. Sarah Kay Rosenman is subject to liability for estate taxes. Appellees are the sons of Mrs. Rosenman by her first marriage. They brought this suit as executors of her estate seeking refund of estate taxes paid. For convenience Mrs. Rosenman will herein be referred to as Mrs. Kay. All events here pertinent occurred in Texas.

In 1943 Mrs. Kay and her husband, Max T. Kay, executed a joint and mutual will. It was made pursuant to an agreement between them regarding the testamentary disposition of their…