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of debts, expenses, and taxes, and a priority for the use of each
source of funds in the payment of decedent's estate obligations.
Specifically, article IV of decedent's will provides that
decedent's assets should be used in the following priority:
(1) Property disclaimed by decedent's spouse, (2) assets that
would have passed to decedent's spouse under articles V and IX of
decedent's will, (3) decedent's class B nonvoting Company shares
(article VIII assets), (4) decedent's limited partnership
interests,1 and (5) decedent's class E voting Company shares
(article VII assets). Decedent incorporated into paragraph 3.1
of her will the provision of Tenn. Code Ann. sec. 35-50-110,
(repl. vol. 1984), which gave her executors broad powers,
including the power to obtain loans. Decedent's will does not
mention the stock restriction agreements, nor does it mention
section 6166.
On January 15 and September 28, 1988, decedent made gifts of
a total of 151,036 shares of class B stock and 1,080 shares of
class E Stock, incurring a gift tax for 1988 of $5,212,646.24.
Decedent's spouse also made gifts of a total of 151,036 shares of
class B stock and 1,080 shares of class E stock on the same
dates. Decedent's total gift tax liability was increased by her
election to split these gifts with her spouse.
1Article VI of decedent's will addressed decedent's limited
partnership interests, which the parties treated as worthless as
of the date of decedent's death.
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