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Article Five of Andrew's will created a trust referred to as
the Marital Trust. Article Five (A)(1) of Andrew's will directed
the trustees of the Marital Trust to pay the income of the
Marital Trust quarterly to decedent or for her benefit during her
lifetime. Article Five (A)(1) also authorized the corporate
trustee of the Marital Trust in its discretion to pay to decedent
or for her benefit such portions of the principal as it deemed
advisable, for any purpose or reason whatsoever. Under Andrew's
will, no person had a power to appoint any part of the principal
of the Marital Trust to any person other than decedent.
Article Five (A)(3) of Andrew's will expressed Andrew's intent
that decedent's income interest be a qualified income interest
for life within the meaning of section 2056 and authorized his
executors in their discretion to elect to qualify the principal
of the Marital Trust as qualified terminable interest property
(QTIP). Article Five (A)(2) of Andrew's will directed the
trustees of the Marital Trust to pay to decedent's personal
representative the amount necessary to discharge all death taxes
resulting from the inclusion of the principal of the Marital
Trust in her estate. On the Form 706 estate tax return filed by
Andrew's estate, the executors elected to claim a marital
deduction for an otherwise nondeductible interest under section
2056(b)(7).
The Federal estate tax liability of Andrew's estate was at
issue before this Court in docket No. 45668-86. In the decision
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