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Tenn. Code Ann. sec. 35-50-110 in decedent's will was qualified
by the phrase "to the extent applicable, and except as otherwise
amended or modified herein". Respondent asserts that decedent's
will provided a clear statement of how the estate's debts, taxes,
and expenses were to be paid. Respondent maintains that
decedent's detailed payment provisions coupled with the buy-sell
agreement in effect on decedent's date of death specifically
prohibited her executors from obtaining loans and that their
action in doing so was unauthorized and should not be charged to
decedent's estate.
The crux of respondent's argument is that decedent must have
known that her estate could face large potential obligations for
taxes and other liabilities. Decedent knew that taxes might
arise from the inclusion in her taxable estate of gift taxes on
gifts she made in January and September 1988, if she died within
3 years of the gifts. Decedent was aware that the buy-sell
agreements provided a means for the sale of her Company stock to
obtain funds to pay the liabilities of her estate. Respondent
contends that decedent consequently gave her executors an
"indirect instruction" to elect section 6166 installment payment
of the taxes because such an election was necessary to conform
the terms of the buy-sell agreements with the terms of the will
as those terms were understood by decedent. We disagree.
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