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Lurie (the estate). Respondent filed an amended answer asserting
that the deficiency in Federal estate tax is $83,677,846.
Robert H. Lurie (decedent) created the Robert Lurie
Revocable Trust (revocable trust), which, upon decedent’s death,
distributed property to a marital trust. The estate claimed a
marital deduction. The trust instrument states that, if, as is
the case here, the assets in the residue of the probate estate
are insufficient to pay Federal estate tax and legal costs, the
revocable trust is to pay the Federal estate tax and legal costs
from property that would otherwise pass to decedent’s surviving
spouse. Decedent executed his will 3 days later. The will is
silent as to the source of payment of Federal estate tax and
legal costs if the assets in the residue of the probate estate
are insufficient to pay the estate tax and costs.
After concessions, the issues for decision are:
1. Whether the revocable trust instrument establishes that
decedent intended for Federal estate tax and legal costs to be
paid out of property in the revocable trust that would otherwise
pass to decedent’s surviving spouse. We hold that it does.
2. Whether, under Illinois law, we may consider decedent’s
intent expressed in his revocable trust instrument regarding
whether Federal estate tax and legal costs are payable out of
property in the revocable trust that would otherwise pass to
decedent’s surviving spouse. We hold that we may.
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