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Respondent focuses on the language “upon or by reason of
which such taxes are assessed and paid” and contends that this
language exonerates from payment of estate taxes all gifts,
bequests, and devises other than the residuary bequest to the
Lubin-Green Foundation, reasoning that this is the only gift,
bequest, or devise that does not constitute property upon or by
reason of which such taxes are assessed and paid. Respondent’s
construction may be tenable but is by no means compelled when the
specific language that respondent relies upon is read in context
with other language in decedent’s will, including the provisions
dealing with the residuary bequest to the Lubin-Green Foundation
and the residuary bequest in trust to decedent’s grandchildren.
For example, if, as respondent contends, the language in
question requires the property passing to the Lubin-Green
Foundation to bear all the estate taxes, then that is the
property “upon which” all the taxes are ultimately assessed and
paid, and consequently that property would also be exonerated
from the payment of estate taxes. Taken to its logical
conclusion, then, this language might be read to exonerate all
gifts, bequests, and devises from being charged with the estate
taxes (other than GST tax).
Also, in the absence of some clearer expression of
decedent’s intent, we would be hard pressed to infer an intent on
her part to allocate all the estate taxes against the charitable
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Last modified: May 25, 2011