- 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 thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011