Estate of Merle Allen Whiting, Jr., Deceased, Vicki Ann Whiting, Executrix - Page 6

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               gifts, over the exemption equivalent of the then                       
               applicable unified credit against estate tax, said                     
               excess being reduced by the aggregate value (using                     
               federal estate tax values, as finally determined) of                   
               all property and interests in property included in the                 
               decedent’s gross estate which qualifies for the federal                
               estate tax marital deduction and which pass or have                    
               passed in a form which qualifies for such marital                      
               deduction from the decedent to the surviving spouse                    
               pursuant to Will, by operation of law, pursuant to                     
               contract or otherwise than by this provision.                          
                    The words “adjusted taxable gifts”, “gross                        
               estate”, “marital deduction”, “pass or have passed”,                   
               “taxable estate” and “unified credit against estate                    
               tax” shall have the same meanings as such words have                   
               under the Internal Revenue Code provisions applicable                  
               to the decedent’s estate * * *.                                        
                              *   *   *   *   *   *   *                               
                    Only assets that qualify for the marital deduction                
               shall be available for selection by the Trustee in the                 
               fulfillment of this distribution.  Each asset selected                 
               by the Trustee to be distributed in kind for the                       
               purpose of satisfying the amount of this distribution                  
               to the surviving spouse shall be valued for such                       
               purposes at the lower of:                                              
                         (i) its fair market value at the time of                     
                    distribution, or                                                  
                         (ii) its value for federal estate tax                        
                    purposes * * * .                                                  
                    Although the decedent’s intent in directing this                  
               method of valuation for distributions in kind in                       
               satisfaction of a pecuniary bequest is to eliminate any                
               recognition of gain with respect to appreciated assets                 
               available for distribution, it also has the result of                  
               qualifying the marital deduction for estate tax                        
               Terms.  The relevant terms of the marital deduction trust,             
          as stated in section 8 of the trust agreement, are as follows:              

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Last modified: May 25, 2011