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Decedent's wife, children, and the issue of any deceased children
constitute the beneficiaries of the family trust. The trustee
has sole discretion to distribute income and principal to any one
or more of the beneficiaries. Any income not distributed to the
beneficiaries is to be added to the principal of the family
trust.
Article IX, paragraph A of the will provides that the
personal representative "may make such elections under the tax
laws applicable to my estate as it determines should be made."
On April 1, 1988, a U.S. Estate Tax Return, Form 706, was
timely filed for the estate with the Internal Revenue Service
Center in Austin, Texas. On the estate tax return, the
coexecutors made the election under section 2056(b)(7) for the
entire marital trust amount, which they valued at $4,162,439.24.
The marital trust amount was computed as follows:
Probate estate $6,685,474.21
Add: Profit sharing plan benefit1 320,327.89
Total 7,005,802.10
Less: Funeral expenses (3,973.00)
Administration expenses (338,849.06)
Debts (20,811.95)
Mortgages & liens (1,365.85)
Less: Specific bequest to spouse (42,075.00)
Specific bequest to son (2,436,288.00)
Net amount to marital trust 4,162,439.24
1The trustees of the marital trust were named as the
beneficiaries of the Clack Corp. Profit Sharing Plan.
Thus, the coexecutors treated the payment of expenses under
Article I, paragraph A of the will, the bequests of tangible
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Last modified: May 25, 2011