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of the three questions placed before this Court.
Therefore, based on the information in the record, we are
able to rule on two of the issues before the Court. We
note that these are issues of New York State law. Where
a Federal tax result turns on an unsettled matter of State
law, we sit, in effect, as a State court. Commissioner v.
Estate of Bosch, 387 U.S. 456, 465 (1967).
I. Claim for Delayed Income Under EPTL Section 11-2.1(k)
Decedent was the income beneficiary of both the
marital trust and the residuary trust established in her
husband's will. As a result, she was entitled to all of
the income produced by the trust assets during her life-
time. We note that Mr. de St. Aubin's will provides that,
after payment of specific bequests, all of the net assets
of his estate were eventually to become a part of one of
these trusts. The trusts were not fully funded during
decedent's lifetime. After her death, the executors of
her husband's estate funded the marital trust with an
additional $1,560,932.80 in cash.
The executors of Mr. de St. Aubin's will also
transferred the common stock of Modern Globe from his
estate to the residuary trusts that were to be established
under his will for the benefit of each of his children at
decedent's death. Thereafter, Modern Globe paid a dividend
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