Case Name: In the Matter of the Will of George T. Brokaw, Deceased. United States Trust Company of New York et al., as Executors of George T. Brokaw, Deceased, Appellants. Guaranty Trust Company of New York et al., as Trustees under a Deed of Trust dated June 12, 1929, Respondents
Court: New York Court of Appeals
Jurisdiction: New York
Decision Date: 1944-12-30
Citations: 293 N.Y. 555
Docket Number: 
Parties: In the Matter of the Will of George T. Brokaw, Deceased. United States Trust Company of New York et al., as Executors of George T. Brokaw, Deceased, Appellants. Guaranty Trust Company of New York et al., as Trustees under a Deed of Trust dated June 12, 1929, Respondents.
Judges: 
Reporter: New York Reports
Volume: 293
Pages: 555–562

Head Matter:
In the Matter of the Will of George T. Brokaw, Deceased. United States Trust Company of New York et al., as Executors of George T. Brokaw, Deceased, Appellants. Guaranty Trust Company of New York et al., as Trustees under a Deed of Trust dated June 12, 1929, Respondents.
Argued November 20, 1944;
decided December 30, 1944.
Harry J. Ahlheim for appellants.
I. Section 124 of the Decedent Estate Law is a mandatory and administrative provision of the Tax Law; in the absence of a contrary direction in the decedent’s will, each tax asset must bear its proportionate share of estate taxes. (Matter of Walbridge, 170 Misc. 127; Matter of Kaufman, 170 Misc. 436; Matter of McManamy, 172 Misc. 392; Matter of Klein, 175 Misc. 961; Matter of Mollenhauer, 257 App. Div. 286; Matter of Ryan, 178 Misc. 1007, 265 App. Div. 1051, 290 N. Y. 933; Matter of Kalik, 179 Misc. 872; Matter of Corlies, 174 Misc. 459; Matter of Pennock, 172 Misc. 10; Chase National Bank v. Tomagno, 172 Misc. 63; Matter of Bull, 175 Misc. 197.) II. There was no obligation on the decedent or his executors to assume the burden of the estate tax, allocable to the trust fund. (Matter of Kaufman, 170 Misc. 436; Matter of Meynen, 173 Misc. 19; Matter of Dettmer, 179 Misc. 844.) . III. The issue as to the construction of the tax clause was decided in favor of the appellants. IV. The trustees have failed to prove any intent'to exonerate them from tax allocation.
Laurence D. Kieran and Otis T. Bradley for Guaranty Trust Company of New York, as trustee, respondent.
I. The Surrogate made no determination as to the issue raised by respondent that the language of the will and the facts and circumstances surrounding its execution indicated an intention by the testator that no part of the estate taxes should be apportioned against the trust for his former wife and daughter. (Matter of Smith, 254 N. Y. 283; Matter of Bloomingdale, 278 N. Y. 435; Matter of Aldrich, 259 App. Div. 162; Matter of Golding, 127 Misc. 821; Matter of Meynen, 173 Misc. 19.) II. The will should be construed in the light of all of the facts and circumstances surrounding its execution as indicating the intention of the testator that no part of the estate taxes should be apportioned against the trust he created for his former wife and child.
James J. Mennis for Clare Luce, as trustee, respondent.
The provisions of the entire will, when considered in the light of the circumstances surrounding the execution thereof, constitute a direction on the part of the testator that there should be no apportionment of taxes against the trust fund. (Matter of Bloomingdale, 278 N. Y. 435; Matter of Aldrich, 259 App. Div. 162; Matter of James, 180 Misc. 441, 267 App. Div. 761; Matter of Strong, 171 Misc. 445.)

Opinion:
Per Curiam.
In the light of circumstances of record surrounding the execution of the decedent's will we read the * First ", " Fourth " and " Fifth " paragraphs thereof as declaratory of his intention that no part of any death taxes which might be levied against his estate should be apportioned, under section 124 of the Decedent Estate Law, against funds of the inter vivas trust created by a deed of trust, dated June 12, 1929, executed by the decedent, as settlor, and by Guaranty Trust Company of New York and Ann Clare Brokaw; as trustees.
The order should be affirmed, with costs payable out of the estate.