O. D. McKee and Estate of Anna Ruth McKee, Deceased, R. Ellsworth McKee and Jack C. McKee, Co-Executors - Page 18

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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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