Estate of Marion P. Bradford, Deceased, Lizette L. Pryor, Executrix - Page 25

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             specified by N.C. Gen. Stat. sec. 28A-27-2(a), then the                  
             decedent automatically loses the benefit of N.C. Gen. Stat.              
             sec. 28A-27-5(a), the exception which provides that any                  
             interest in a decedent's estate for which a deduction or                 
             exemption is allowed, such as a charitable bequest, is not               
             taken into account in the apportionment computation.  The                
             estate does not take issue with this assumption.                         
                  Contrary to the estate's argument, respondent explains              
             that the parenthetical language in paragraph 1.02 of the                 
             decedent's will merely serves "to indicate that there is an              
             alternative source of payment of death taxes" and does not               
             mean that all death taxes are to be paid by the trust.                   
             Respondent argues that the estate's reading of the will                  
             disregards paragraph 1.03, which permits the payment of                  
             death taxes out of the trust if the residuary estate is                  
             insufficient and if the "Executor shall certify to the                   
             Trustee * * * the amount of the insufficiency".  Respondent              
             further argues that the estate's reading of the will                     
             disregards paragraph 6.02B of the trust agreement, which                 
             states that the successor trustee shall pay to the                       
             decedent's estate amounts "which are certified by the                    
             personal representative of Grantor's estate as being                     
             required to pay * * * (iii) any death taxes imposed by                   
             reason of Grantor's death".                                              

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Last modified: May 25, 2011