Download This PaperQTIP Remaindermen Liable for Estate Taxes Attributable to Trust Corpus Included in Decedent's Estate
46 Brooklyn Barrister No. 3, p. 5, 1994
6 Pages Posted: 27 May 2020
Date Written: November 1, 1994
Abstract
In Matter of Kramer, the Appellate Division, First Department, affirmed Surrogate Renee Roth's decision that held QTIP remainder-men were liable for the estate tax attributable to the trust corpus because the tax apportionment clause contained in the decedent's LWT was not sufficiently detailed to exonerate them from contribution. Accordingly, the Surrogate order the QTIP beneficiaries to contribute, pursuant to IRC section 2207A and EPTL section 2-1.12, their rate-able share of the overall estate tax attributed to inclusion of the QTIP.
Matter of Kramer highlights not only the importance of a properly drafted estate tax apportionment clause, but it emphasizes the need for practitioners to consider estate tax payment and liquidity issues with their clients.
Keywords: Qtip, Tax Apportionment, Section 2207A, Eptl Section 2–1.12, Estate Taxation, Estate Administration, Surrogate’s Court
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