Estate of Walton v. Dept. of Revenue

Norman J. Walton died in 1983. His last will and testament made no provisions for his widow, Martha Walton. Pursuant to § 43-8-90, Code 1975, Mrs. Walton filed an action seeking her statutory share of the estate as an omitted spouse. The estate and Mrs. Walton reached an agreement which provided that she would receive certain properties and a lump-sum payment of $78,000 cash during the fiscal year ending January 31, 1985. The $78,000 was paid by the estate.

The estate filed an Alabama income tax return for the 1985 fiscal year and reported distributable net income of $59,528. The estate…