Estate of Law

The executor of the estate of Herbert E. Law appeals from the orders of the trial court overruling its objections and fixing the marital exemption under section 13805 of the Revenue and Taxation Code at the amount computed by the Controller.

Decedent died testate on June 18, 1952. He left over half his estate to his wife, provided a legacy for an adopted daughter, and left the residue in trust for other beneficiaries. [1] The will provided that inheritance and estate taxes should be paid "out of my residuary estate in the same manner as an expense of administration" and should not be apportioned, prorated, or charged against any of the devisees, legatees, or beneficiaries. This provision precluded proration of the federal estate tax under sections 970 to 977 of the Probate Code. The market value of decedent's estate, which consisted solely of separate property, was $2,961,436.71. [2] The computations of the marital exemption contended for by the parties are as follows:

Tabular Material Omitted

The difference in the computations arises from the fact that the Controller subtracts all allowable deductions, including the federal estate tax ($418,901.13), from the…