Estate of Wathen

56 Cal.App.4th 48 (1997) Estate of MARGARET C. WATHEN, Deceased.

WARNER STURTEVANT, as Trustee, etc., Petitioner and Respondent,

v.

GREATER LOS ANGELES ZOO ASSOCIATION, Objector and Appellant.

Docket No. B099003. Court of Appeals of California, Second District, Division One.

June 27, 1997. [49] COUNSEL

O'Melveny & Myers, David D. Watts, Diane E. Pritchard and Carol A. Johnston for Objector and Appellant.

Randall D. Fowler, Howard S. Klein, Moffitt, Weagant & Loo, Lance M. Weagant and John Loo for Petitioner and Respondent.

[50] OPINION

VOGEL (Miriam A.), J.

We hold in this case that where, as here, a decedent's will attempts to specify the manner in which death taxes are to be allocated but does so in an ambiguous manner, extrinsic evidence is admissible to clarify the decedent's intent. We also hold that a direction in a will, as construed with the aid of extrinsic evidence, that all death taxes are to be paid by the residuary estate created by a living trust executed at the same time as the will and as part of an integrated testamentary plan satisfies the requirements of subdivision (b)(1) of section 20110 of the Probate Code[1] and qualifies as a specific direction by the decedent that all estate taxes are to be satisfied as directed and not prorated as provided in subdivision (a) of section 20110.

FACTS

On August 19, 1988, Margaret C. Wathen executed an integrated testamentary plan comprised of two documents, a will and a living trust. In her will, Wathen (divorced and with no issue) left her entire estate to the trustee of her living trust, with directions to distribute it according to the terms of the trust. Among other things, the will provides that if the trust should fail for any reason, its terms are to be incorporated into the will, her estate given to the trustee named in the trust, and distribution made as provided in the trust. On the subject of taxes, the will provides as follows: "I direct that all estate or other death taxes that may by reason of my death be attributable to my probate estate or any portion of it, or to any property or transfers of property outside of my probate estate, without administration, shall be charged to and paid out of the ... Trust, as provided therein, without adjustment among the residuary beneficiaries, and shall not be collected from any beneficiary of my probate estate, or from any transferee or beneficiary of any property outside of my probate estate." (Italics added.)