Department of Revenue v. Heidner

This is a dispute between the Inheritance Tax Division of the Department of Revenue and the executors of an estate as to the amount of state inheritance tax due. More precisely, the issue is whether or not, for inheritance tax purposes, the amount of federal estate tax paid may be deducted from the net taxable estate prior to calculating the taxable value of the interest of a life estate under a trust established by the residuary clause of a will.

Marco J. Heidner died testate on March 6, 1966. After making specific bequests to his wife, his will placed “all the rest residue and remainder of…