Estate of McAuliffe

California Court of Appeal Apr 21, 1955 No. Civ. No. 20744Published

Before: Fox

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Holding. The court held that a testatrix's explicit direction that all taxes be paid by her estate and not be chargeable to the beneficiaries constitutes a valid directive against the proration of federal estate taxes under Probate Code section 970. Consequently, the federal estate tax must be deducted from the residuary estate before determining the shares of the residuary beneficiaries.

Issues

Whether a testamentary direction that taxes be paid by the estate and not charged to beneficiaries constitutes a direction against proration under Probate Code section 970.
Whether federal estate taxes should be deducted from the residuary estate before determining the shares of residuary beneficiaries, including tax-exempt charitable beneficiaries.

Disposition. affirmed

Quotations verified verbatim against the opinion

“Any language that clearly shows that the testator does not intend proration is sufficient.”

132 Cal.App.2d 476 (1955) Estate of FLORENCE MacALPINE McAULIFFE, Deceased. THE FIRST CHURCH OF CHRIST, SCIENTIST, in Boston, Massachusetts, Appellant,

FIRST TRUST & SAVINGS BANK OF PASADENA, as Trustee, etc., et al., Respondents.

Civ. No. 20744. California Court of Appeals. Second Dist., Div. Two.

Apr. 21, 1955. Lindstrom & Bartlett and Arthur W. Eckman for Appellant.

James W. Hickey, Walter H. Miller, Myron Siedorf, John Mellen, Campbell, Smith & Campbell, Robert B. Campbell and William B. Etheridge for Respondents.

FOX, J.

This is an appeal by The First Church of Christ, Scientist, of Boston, Massachusetts, from two orders of the probate court: (1) determining residuary interest under will and overruling objections to inheritance tax report; and (2) fixing inheritance tax.

Testatrix, a widow, made her will in May, 1952, and passed away the following October. She left surviving no children or lineal descendants. Her nearest relatives are two cousins. The will was probated in November, 1952. The estate was appraised at more than $500,000 and consists principally of cash and securities.

Paragraph First of testatrix' will reads as follows:

"First: I direct that my Executor hereinafter named, shall pay all my funeral and last illness expenses as soon after my demise as may be convenient, and all Federal estate and State inheritance or estate taxes, it being my direction that [478] all expenses and taxes payable by reason of my demise, be paid by my estate and not chargeable to the beneficiaries."

By paragraph Fourth of her will testatrix incorporated therein specific bequests of household furniture, furnishings, jewelry, and wearing apparel to twelve designated persons. The total appraised value of these items is $3,605.40. Each has been distributed to the specific legatee and this appeal does not affect those gifts.

The other dispositive provisions of the will, by separately numbered paragraphs (seven through ten) give the remainder of her estate and property over which she had power of appointment to the following legatees in the proportions indicated:

Estate of McAuliffe

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FOX, J.

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