In re Estate of Luce

Summary

The court considered exceptions to an Ohio inheritance-tax determination concerning a residuary bequest to an individual for expenditure on charities of her choosing. It held that the bequest was not exempt because the will did not itself restrict the funds to qualifying charitable uses within Ohio and left the selection of charities to a third person. The court also sustained the State's exception to an extraordinary fiduciary-fee deduction and overruled the executor's exceptions.

Holdings

1. A charitable bequest is not exempt under Ohio Revised Code § 5731.09 when the will leaves the selection of charities entirely to a third person and does not itself restrict the bequest to institutions for public charity carried on in whole or in substantial part within Ohio.
2. The high-low determination was not proper because the bequest was not an estate or succession shown to qualify for exemption under Ohio Revised Code § 5731.09.
3. The requested extraordinary fiduciary fee of $41,164.73 was not allowable because no extraordinary services had been performed.

Questions Presented

1. Whether the residuary charitable bequest qualified for exemption from Ohio inheritance tax when the will gave a third person unrestricted discretion to select the charities.
2. Whether the court could enter a high-low inheritance-tax determination where the bequest was not shown to be exempt under the governing statute.
3. Whether an extraordinary fiduciary fee of $41,164.73 could be allowed when no extraordinary services had been performed.

Disposition

other