5
Under the will, the marital share funds the marital trust
and is "hereinafter defined." The nonmarital share is the
balance of the residuary estate after deducting the marital
share. The nonmarital share is allocated "as hereinafter
provided."
The second paragraph of item III defines the marital share.
It provides:
The marital share shall be an amount equal to the
value of my residuary estate, reduced by the largest
amount which, when added to the amount of any adjusted
taxable gifts made by me during my lifetime, will be
subject to federal estate tax under section 2001 of the
Internal Revenue Code of 1986, or any successor
provision, at a marginal rate of less than 50%.
To calculate the marital share, we start with the residuary
estate, as provided under the first paragraph of item III. Next
we must calculate the largest amount (LA), which, when added to
lifetime gifts (LG), will be taxed at a marginal rate of less
than 50 percent. To tax the sum of the largest amount and the
lifetime gifts at a marginal rate of less then 50 percent, we
must consider the entire taxable estate. The entire taxable
estate consists of the nonmarital share, as hereinafter
determined, the lifetime gifts, and the bequests to the
grandchildren (BG).3
3 The specific bequests to the spouse would not be part of
the taxable estate as those bequests qualify for the marital
deduction.
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Last modified: May 25, 2011