Estate of Harry Fagan, Jr., - Page 4




                                        - 4 -                                         

          should not have been deducted in determining the value of the               
          bequest.  The parties do not dispute the subtraction of the debts           
          from Mrs. Fagan's gross estate before determining decedent's one-           
          half share.                                                                 
               Discussion                                                             
               Generally, the value of the gross estate of a decedent                 
          includes the value of all of the decedent's property, real or               
          personal, tangible or intangible, wherever situated, to the                 
          extent of the decedent's interest therein at the time of death.             
          Secs. 2031(a), 2033.  State law determines property interests.              
          Morgan v. Commissioner, 309 U.S. 78 (1940).  Thus, our decision             
          on this issue involves a determination of decedent's property               
          rights under Mrs. Fagan's will pursuant to the laws of the State            
          of North Carolina.                                                          
               Where the terms of a will are not clear, unequivocal, and              
          unambiguous, it is the responsibility of the courts to interpret            
          the will.  Pittman v. Thomas, 307 N.C. 485, 492, 299 S.E.2d 207,            
          211 (1983).  Under North Carolina law, "'the intention of the               
          testator is the polar star which is to guide in the                         
          interpretation of all wills, and, when ascertained, effect will             
          be given to it unless it violates some rule of law, or is                   
          contrary to public policy.'"  Id. (quoting Clark v. Connor, 253             
          N.C. 515, 520-521, 117 S.E.2d 465, 468 (1960)).  In determining a           
          testator's intent, the will is to be considered as a whole and in           
          light of the circumstances at the time the will was made.  Id.              
          Where possible, effect is to be given to every clause, phrase,              

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011