Jones v. Hassett

WYZANSKI, District Judge.

This case presents what must be. an ever-recurring question in fiduciary accounting under the federal income tax law: may testamentary trustees of the residue of an estate in their fiduciary federal income tax return deduct interest they paid on account of the testator’s federal estate tax?

Charles H. Jones, the testator, named the same persons as executors of his will and as trustees of the residue of his estate. In 1936 they as executors had distributed some of their assets to themselves as trustees, but had retained in. excess of $300,000. In that year they as…