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The trust agreement established a trust of the proceeds of
certain life insurance policies on the life of decedent to be
received by the trustee as beneficiary, plus other property
received by the trustee from decedent or third parties. The
trust was revocable by decedent, who also reserved the right to
receive the income and such portions of principal as decedent
requested.
Article IV of the trust agreement provides for the
disposition of the trust estate remaining at the time of
decedent's death, including property devised or bequeathed under
decedent's will, by dividing the remaining estate into three
shares designated as shares A, B, and C. Shares A and B, each
equal to one-fifth of the trust estate, were to be placed in
trust for decedent's daughter and son, respectively. Share C,
constituting three-fifths of the trust estate, was to be
distributed one-fourth to each of four charitable organizations.
The trust agreement provided "that the portions disposed of under
Share C shall not be reduced by any taxes chargeable against the
Grantor's gross estate."
In addition, Article V of the trust agreement provides:
5.02 Use of Trust Funds to Pay Estate Debts.
The Trustee shall pay to the Executor or Administrator
of the estate of the Grantor from the principal of the
trust of Shares A and B, such sum or sums as such
Executor or Administrator certified to be necessary to
discharge the liability of the estate of the Grantor
for all inheritance, legacy, succession or estate taxes
due from or assessed against the estate of the Grantor,
and such further sum or sums as the Executor or
Administrator may certify to the Trustee as being
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Last modified: May 25, 2011