In re Estate of Roberts

94 Ohio St. 3d 311 (Ohio 2002) · Supreme Court of Ohio · February 27, 2002

Summary

The Ohio Supreme Court held that the estate-tax exclusion in R.C. 5731.09(A) does not apply to funds transferred by a decedent from an employer-sponsored retirement account into an individual retirement account when the employer did not directly contribute to the IRA. Because the decedent’s employer was not a party to or contributor under the IRA agreement, the disputed portion of the rollover IRA was included in the gross estate.

Holdings

  1. The second paragraph of R.C. 5731.09(A) is a tax-exemption provision, so any doubt about its meaning must be resolved in favor of taxation and against the exemption.
  2. R.C. 5731.09(A) does not exclude from the taxable gross estate the value of funds transferred by the decedent from an employer-sponsored retirement account to an individual rollover IRA when the employer did not directly contribute to the IRA contract or agreement.

Questions Presented

  1. Whether R.C. 5731.09(A) excludes from Ohio's taxable gross estate funds traceable to employer contributions to an employee retirement plan after the decedent transferred those funds to an individual rollover IRA to which the employer did not directly contribute.
  2. Whether the second paragraph of R.C. 5731.09(A) is a tax-exemption provision that must be strictly construed against the taxpayer and in favor of taxation.

Disposition

affirmed

Cases Cited (10)

  • Davis v. Willoughby, 173 Ohio St. 338, 182 N.E.2d 552 (1962)(followed)
  • Clark Restaurant Co. v. Evatt, 146 Ohio St. 86, 64 N.E.2d 113 (1945)(followed)
  • Sims Bros., Inc. v. Tracy, 83 Ohio St. 3d 162, 166, 699 N.E.2d 50, 54 (1998)(followed)
  • Lakefront Lines, Inc. v. Tracy, 75 Ohio St. 3d 627, 629, 665 N.E.2d 662, 664 (1996)(followed)
  • Cleveland v. Bd. of Tax Appeals, 153 Ohio St. 97, 99-100, 91 N.E.2d 480, 482 (1950)(followed)
  • Natl. Tube Co. v. Glander, 157 Ohio St. 407, 105 N.E.2d 648 (1952)(followed)
  • Ares, Inc. v. Limbach, 51 Ohio St. 3d 102, 104, 554 N.E.2d 1310, 1312 (1990)(followed)
  • Vought Industries, Inc. v. Tracy, 72 Ohio St. 3d 261, 264-265, 648 N.E.2d 1364, 1366-1367 (1995)(followed)
  • In re Estate of White, 25 Ohio St. 3d 355, 357-358, 496 N.E.2d 888, 889-890 (1986)(followed)
  • State ex rel. Foster v. Evatt, 144 Ohio St. 65, 56 N.E.2d 265 (1944)(followed)

Cited In (0)

No citing cases on record yet.

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