Gulfstream Aircraft Heirs to $200 Million Estate Lose Tax Case

Several heirs to aircraft executive Allen Paulson’s estate are on the hook personally for the estate’s unpaid taxes, a divided Ninth Circuit panel ruled Wednesday.

Paulson headed aircraft manufacturer Gulfstream Aerospace Corp. and was also a famed race horse owner. He left most of his assets, which were valued at about $193 million when he died in 2000, in a living trust that had been designated to pay the estate’s taxes.

The two cases in the appeal arose when the Justice Department sued several of Paulson’s heirs to collect on more than $10 million in unpaid estate taxes, ...