Pacific National Bank v. Regents of University

The main question presented by this appeal from a judgment determining heirship in the estate of S. Neider is whether the probate court correctly decided that the testator’s direction for an equal division of the residue constitutes a clear, unambiguous direction against proration of the federal estate tax within the meaning of section 970 of the Probate Code and that the specific legatee was exonerated from the burden of the tax. Appellant, The Regents of the University of California (hereafter University) argues that its 50 percent share of the residue is to be computed after proration of the tax as to all legatees. Respondents are: Pacific National Bank (hereafter Bank), executor of the estate; William R. Dobson, trustee of the E & C Cute Trust, the specific legatee (hereafter Dobson); and the other general legatees (hereafter Neider).

The facts are not in dispute. The testator, a resident of San Francisco, died on January 11,1962. His witnessed will, dated April 16, 1956, and a holographic codicil, dated December 4, 1960, were admitted to probate, and' the Bank appointed as executor in 1962.

*105 The witnessed will merely bequeathed the entire estate to the Bank as trustee…