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Article III merely reflect that, absent any reference to Federal
estate taxes, the burden of such taxes would have been allocated
to all the legatees, including decedent, under the apportionment
provision of chapter 28A, article 27, of the General Statutes of
North Carolina (1997). Specific language preventing this
consequence with respect to administrative costs was unnecessary
because there is no provision of North Carolina law apportioning
such costs.
We sustain respondent's position on this issue.
Issue 2. Decedent's Charitable Bequests
Background
On June 17, 1988, decedent executed a will and a trust
agreement. The trust agreement was between decedent as grantor
and First Citizens Bank as trustee. Decedent also named First
Citizens Bank as executor of his will. In decedent's will, he
left his automobile to his son and the rest of his tangible
personal property to his daughter. Decedent made no other
specific bequests and left the residue of his estate to the
trust.
Decedent's will contains the following pertinent provisions:
ARTICLE I
DIRECTIONS TO EXECUTOR
1.01 Claims against My Estate. I direct my
Executor, hereinafter named, to pay out of the general
funds of my estate the cost of the administration of my
estate, all my legal debts, expenses of last illness,
and funeral expenses.
1.02 Payment of Taxes. I direct my Executor
to pay out of my residuary estate, otherwise passing
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