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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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