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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,
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