1.5.1 “Standard” Tax Clauses (Paid Out of Residue).
1.5.1.1 I direct that all inheritance, estate, succession and other transfer taxes occasioned by my death, together with the reasonable expenses of determining the same and any interest of penalties thereon, paid with respect to all probate and non-probate property includible in my gross estate and taxable by reason of my death (whether payable by my estate or by the recipient of any such property) shall be paid and discharged in full without any apportionment, by my Personal Representative out of my residuary estate.
1.5.1.2 If my wife shall survive me, I direct that all estate, inheritance, succession, transfer or other death taxes assessed by any taxing authority, whether foreign or domestic, in respect of all property taxable by reason of my death or by reason of the inclusion of such property in my gross estate for estate tax purposes, be paid, without apportionment, out of that portion of my residuary estate not qualifying for the marital deduction. To the extent the non-marital portion of my residuary estate is insufficient to pay such taxes, I direct that the balance of such taxes be paid from that portion of my residuary estate, if any, which qualifies for the marital deduction, without apportionment. If my wife shall not survive me, I direct that all such taxes shall be paid from my residuary estate without apportionment. However, the aforesaid notwithstanding, if, at the time of my death, I am the beneficiary of a qualified terminable interest property (QTIP) trust, and the principal of that trust is includible in my gross estate for tax purposes, it is my direction, pursuant to the provisions of Internal Revenue Code, Section 2207A, that my Personal Representative or the trustee of such trust withhold from the shares of the remaindermen of such trust an amount by which the estate tax in my estate exceeds the amount of the estate tax which would have been payable had the trust property not been included in my estate for tax purposes.
1.5.2 Apportionment for Certain Non-Probate Disposition.
1.5.2.1 I direct that all estate, legacy, inheritance, succession, transfer, or all other death taxes assessed by any taxing authority, whether foreign or domestic, in respect of all property taxable by reason of my death or by reason of the inclusion of such property in my gross estate for estate tax purposes, whether such property passes under this will or otherwise, whether payable by my estate or by any recipient of such property, shall be paid as follows:
(a) All such taxes attributable to property passing under this will shall be paid out of my residuary estate and charged to the trust created under the [name and date of living trust instrument], as provided in such instrument.
(b) All such taxes which are attributable to the assets of the [name of living trust] shall be allocated and paid as provided in such instrument.
(c) All such taxes which are attributable to any other property shall be apportioned among the persons and entities benefited in the proportion that the taxable value of the property or interest bears to the total taxable value of the property and interests received by all persons benefited (the values as finally determined in the respective tax proceedings being the values to be used for the appointment of the respective taxes) and my Personal Representative shall seek reimbursement for such taxes from the persons benefited to the fullest extent permitted by any applicable law.
1.5.3 Apportionment of All Dispositions.
1.5.3.1 I direct that all estate, legacy, inheritance, succession, transfer, or all other death taxes assessed by any taxing authority, whether foreign or domestic, in respect of all property taxable by reason of my death or by reason of the inclusion of such property in my gross estate for estate tax purposes, whether such property passes under this will or otherwise, whether payable by my estate or by any recipient of such property, shall be apportioned among the persons and entities benefited in the proportion that the taxable value of the property or interest bears to the total taxable value of the property and interest received by all persons benefited (the values as finally determined in the respective tax proceedings being the values to be used for the apportionment of the respective taxes) and my Personal Representative shall seek reimbursement for such taxes from the persons benefited to the fullest extent permitted by any applicable law.
