Peggy Haney and Michelle Jared, Personal Representatives of the Estate of Sylvia Kitchen, Deceased v. Eallen Kitchen

Summary

The Iowa Supreme Court held that a former executor did not breach his fiduciary duty by failing to file an amended inheritance tax return seeking a refund after a will contest. The court concluded that beneficiaries who had the right to file the amended return could protect the estate's interests themselves, and the executor was not required to certify and defend a return inconsistent with the testamentary position he was pursuing on appeal. The court affirmed the district court's dismissal of the estate's inheritance-tax claim.

Holdings

1. Under the facts and circumstances of this case, Eallen did not breach his fiduciary duty by failing to file an amended inheritance tax return or claim a refund.
2. The 1994 will remained the testamentary scheme governing the estate until procedendo issued after the judgment setting it aside became final; the executor therefore was not required to file a return inconsistent with that scheme and his litigation position.

Questions Presented

1. Whether an executor breached Iowa Code section 633.160 by failing to file an amended inheritance tax return and claim a refund for an alleged overpayment.
2. Whether the executor had a duty to file or defend an amended inheritance tax return that was inconsistent with the testamentary scheme then in effect and with the executor's position in the pending will-contest litigation.

Disposition

affirmed