§ 2-1.8 Apportionment of federal and state estate or other death taxes;\n fiduciary to collect taxes from property taxed and transferees\n thereof\n (a) Whenever it appears in any appropriate action or proceeding that a\nfiduciary has paid or may be required to pay an estate or other death\ntax, under the law of this state or of any other jurisdiction, with\nrespect to any property required to be included in the gross tax estate\nof a decedent under the provisions of any such law (hereinafter called\n"the tax"), the amount of the tax, except in a case where a testator\notherwise directs in his will, and except where by any instrument other\nthan a will (hereinafter called a "non-testamentary instrument")\ndirection is given for apportionment within the fund of taxes assessed\nupon the specific fund dealt with in such non-testamentary instrument,\nshall be equitably apportioned among the persons interested in the gross\ntax estate, whether residents or non-residents of this state, to whom\nsuch property is disposed of or to whom any benefit therein accrues\n(hereinafter called "the persons benefited") in accordance with the\nrules of apportionment herein set forth, and the persons benefited shall\ncontribute the amounts apportioned against them.\n (b) Unless otherwise provided, when a disposition is made by which any\nperson is given an interest in income or an estate for years or for life\nor other temporary interest in any property or fund, the tax\napportionable against such temporary interest and the remainder limited\nthereon is chargeable against and payable out of the principal of such\nproperty or fund without apportionment between such temporary interest\nand remainder. The provisions of this paragraph apply although the\nholder of the temporary interest has rights in the principal, but do not\napply to a common law annuity.\n (c) Unless otherwise provided in the will or non-testamentary\ninstrument, and subject to paragraph (d-1) of this section:\n (1) The tax shall be apportioned among the persons benefited in the\nproportion that the value of the property or interest received by each\nsuch person benefited bears to the total value of the property and\ninterest received by all persons benefited, the values as finally\ndetermined in the respective tax proceedings being the values to be used\nas the basis for apportionment of the respective taxes.\n (2) Any exemption or deduction allowed under the law imposing the tax\nby reason of the relationship of any person to the decedent, the fact\nthat the property consists of life insurance proceeds or the charitable\npurposes of the gift shall inure to the benefit of the person bearing\nsuch relationship or receiving such insurance proceeds or charitable\ngift, as the case may be.\n (3) Any deduction for property previously taxed and any credit for\ngift taxes paid by the decedent shall inure to the benefit of all\npersons benefited and the tax to be apportioned shall be the tax after\nallowance of such deduction or credit.\n (4) Any interest resulting from the late payment of the tax shall be\napportioned in the same manner as the tax and shall be charged wholly to\nprincipal.\n (5) Any discount allowed for prepayment of the tax shall be credited\nwholly to the principal of the funds contributing the moneys used for\nprepayment in proportion to the contribution made.\n (d) Subject to subparagraphs (1), (2) and (3) of this paragraph, any\ndirection as to apportionment or non-apportionment of the tax, whether\ncontained in a will or a non-testamentary instrument, relates only to\nthe property passing thereunder, unless such will or instrument provides\notherwise.\n (1) Any such direction in a will which is later in date than a prior\nnon-testamentary instrument and which contains a contrary direction\nshall govern provided that the later will specifically refers to the\ndirection in such prior instrument.\n (2) Any such direction in a non-testament
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