Estate of Harry Fagan, Jr., - Page 12




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               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            


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