Estate of Marion P. Bradford, Deceased, Lizette L. Pryor, Executrix - Page 29

                                        - 29 -                                        
             charged against or recovered from any recipient or                       
             beneficiary of the property taxed".  Thus, not only does                 
             the will direct that the decedent's death taxes be paid                  
             from his residuary estate, but it also directs that the                  
             taxes be paid as an administration expense and that they be              
             borne by the residuary estate without charge or recovery                 
             from any recipient or beneficiary.  In our view, this is                 
             equivalent to directing that death taxes not be prorated or              
             apportioned.  See Estate of McKay v. Commissioner, T.C.                  
             Memo. 1994-362, where the decedent directed that her death               
             taxes be paid out of the residuary of her estate "without                
             adjustment among the residuary beneficiaries, and shall not              
             be charged against or collected from any beneficiary of my               
             probate estate."  See also Branch Banking & Trust Co. v.                 
             Staples, 461 S.E.2d 921, 926 (N.C. Ct. App. 1995).                       
                  We reject the estate's contention that the decedent                 
             must use the word "apportionment" in order to express the                
             concept that there is to be no apportionment of death                    
             taxes.  We also reject the estate's contention that the                  
             phrase "of the property taxed" in paragraph 1.02 of the                  
             will conveys the "decedent's intent to recover the taxes                 
             only from those recipients or beneficiaries who receive                  
             property subject to tax, i.e., non-charitable bene-                      
             ficiaries."  We disagree that this phrase, when read                     

Page:  Previous  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  Next

Last modified: May 25, 2011