- 12 -
total tax paid as the proceeds of such policies bear to
the taxable estate. * * * [Fn. ref. omitted.]
Chapter 28A, article 27, of the General Statutes of North
Carolina is entitled "Apportionment of Federal Estate Tax." N.C.
Gen. Stat. sec. 28A-27-2 provides in part:
(a) Except as otherwise provided in subsection (b)
of this section, or * * * [computational statutes] the
tax shall be apportioned among all persons interested
in the estate in the proportion that the value of the
interest of each person interested in the estate bears
to the total value of the interests of all persons
interested in the estate. The values as finally
determined for federal estate tax purposes shall be
used for the purposes of this computation.
(b) In the event the decedent's will provides a
method of apportionment of the tax different from the
method provided in subsection (a) above, the method
described in the will shall control. * * * [Emphasis
added.]
The section then provides for exceptions not applicable to the
instant case.
N.C. Gen. Stat. sec. 28A-27-5(a) provides in part:
(a) Any interest for which a deduction or
exemption is allowed under the federal revenue laws in
determining the value of the decedent's net taxable
estate, such as * * * gifts or bequests for charitable,
public, or similar purposes shall not be included in
the computation provided for in G.S. 28A-27-2 to the
extent of the allowable deduction or exemption. * * *
Petitioner's position is that decedent's charitable bequests
should not be reduced by any taxes. Petitioner argues that
decedent's intent to pass the bulk of his estate to charity free
of tax is clear from reading the provisions of the will and trust
together. Alternatively, petitioner argues, if one looks only to
the will, decedent's instructions as to apportionment within the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011