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the Internal Revenue Code (hereinafter all section
references are to the Internal Revenue Code as in effect on
the date of the decedent's death). Resolution of this
issue depends upon whether the Federal estate and State
inheritance taxes attributable to the decedent's death are
to be apportioned to the estate's charitable beneficiary,
thereby reducing, pursuant to section 2055(c), the amount
of the charitable deduction claimed on the subject estate
tax return, and whether the Federal estate and State
inheritance taxes paid by the decedent's inter vivos trust
reduce the amount of the charitable bequest and, thus, also
reduce the amount of the charitable deduction.
Background
The parties filed this case without trial under Rule
122 of the Tax Court Rules of Practice and Procedure
(hereinafter all Rule references are to the Tax Court Rules
of Practice and Procedure). The stipulation of facts and
the accompanying exhibits filed by the parties are hereby
incorporated in this opinion.
The decedent died testate on April 3, 1996, in
Raleigh, North Carolina. He was 86 years of age at the
time. A friend and caregiver of the decedent, Ms. Lizette
L. Pryor, was duly appointed executrix of the decedent's
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