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* * * * * * *
4.1 Debts and Taxes. Upon the death of the
Grantor, the Trustee shall, to the extent that the
assets of the Grantor’s estate * * * are insufficient,
pay * * * reasonable expenses of administration of his
estate, * * * all income, estate, inheritance, transfer
and succession taxes, including any interest and
penalties thereon, which may be assessed by reason of
the Grantor’s death, without reimbursement from the
Grantor’s Executor or Administrator, from any
beneficiary of insurance upon the Grantor’s life, or
from any other person; provided, however, that even if
the assets of the Grantor’s estate shall not be
insufficient, if the Trustee shall be holding as part
of the trust estate Treasury Bonds which are redeemable
at par in payment of federal estate taxes, then such
Bonds shall be used to pay any federal estate tax due
before any other asset is used. All such payments
shall be charged first against the principal of the
trust estate other than a Marital Trust.
C. Decedent’s Will
Decedent executed his will on December 22, 1989. In it, he
provided for all of his personal effects to be distributed to his
wife and the remainder of his estate (referred to in decedent’s
will as the “residuary estate”) to be distributed to the
revocable trust. In his will, decedent directed payment of his
debts, funeral expenses, costs of administration, legal expenses,
and taxes assessed by reason of his death from his residuary
estate, except to the extent that certain U.S. Treasury bonds
redeemable at par value (Flower Bonds) were held by the revocable
trust.
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Last modified: May 25, 2011