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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
purposes.
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