- 32 -
thus safeguards against distributing too much to the
noncharitable beneficiary.
A different provision of the trust agreement,
paragraph 6.02B, governs the "payment of bequests, debts,
expenses and taxes". In this payment provision, the trust
agreement directs that the amounts of bequests, debts,
expenses, and death taxes which are certified for payment
by the decedent's personal representative "shall be paid
first from the Trust property which is subject to
allocation under Article V." Significantly, paragraph 6.02
states that it shall apply "notwithstanding the directions
previously given as to the disposition of the Trust after
the Grantor's death".
Thus, as we read paragraph 6.02B of the trust agree-
ment, any death taxes which are certified for payment by
the decedent's personal representative are to be paid
before the trust property is allocated to the two trust
beneficiaries and, thus, before the share of the charitable
beneficiary is determined. In effect, any death taxes
that are certified for payment by the decedent's personal
representative reduce the amount of property to be
distributed to the charitable beneficiary.
In summary, we agree with respondent that the
decedent's will, in substance, directs that the death taxes
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