Estate of Marion P. Bradford, Deceased, Lizette L. Pryor, Executrix - Page 20

                                       - 20 -                                         
             gift or bequest for charitable purposes, then the interest               
             is not to be included in the apportionment computation.                  
             N.C. Gen. Stat. sec. 28A-27-5(a).  In that event, none                   
             of the Federal estate tax is apportioned by the North                    
             Carolina statute to the charitable bequest or other                      
             deductible interest, and the entire amount of the bequest                
             can be deducted from the gross estate in computing the                   
             taxable estate.  See, e.g., Estate of Brunetti v.                        
             Commissioner, T.C. Memo. 1988-517.                                       
                  The North Carolina apportionment statute further                    
             provides that if a decedent's will specifies a method of                 
             apportionment of the estate tax that is different from the               
             method specified by N.C. Gen. Stat. sec. 28A-27-2(a), then               
             the method specified in the decedent's will controls.  N.C.              
             Gen. Stat. sec. 28A-27-2(b).                                             
                  There are several provisions of the Internal Revenue                
             Code in which Congress has given the decedent's estate the               
             right to recover from the person receiving the decedent's                
             property the portion of the estate tax burden attributable               
             to the property.  See secs. 2206 (life insurance), 2207                  
             (powers of appointment), 2207A (marital deduction                        
             property), and 2207B (reserved life estate).  Generally,                 
             these Federal recovery provisions deal with property                     
             that does not pass through the hands of a personal                       

Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011