11-1.2 - Tax elections by personal representatives

§ 11-1.2 Tax elections by personal representatives    (A)  If  the  personal  representative  or  other  person  acting in a  fiduciary capacity with respect  to  a  decedent's  estate,  hereinafter  called  the  "fiduciary", claims as income tax reductions administration  expenses chargeable to principal that may be claimed by  such  fiduciary  as  either  estate  tax  deductions or as income tax deductions with the  result that the income taxes paid by or chargeable to income or  to  any  income  beneficiary  are reduced and with the further result that United  States or New York estate taxes chargeable to principal  are  increased,  then,  unless  otherwise  provided or authorized by the decedent's will,  each person, including the estate or any trust, who has received the use  of  such  income  tax  deductions  shall  reimburse  to  the   principal  chargeable  with  such  increased  estate  taxes an amount determined by  multiplying such increase  in  estate  taxes  by  a  fraction  having  a  numerator equal to the income tax deduction made available to him as the  result  of  the  aforesaid election and a denominator equal to the total  amount of the income tax deductions made available thereby.    (b) Unless otherwise expressly  provided  by  a  will  under  which  a  disposition  is  made to or for the benefit of the surviving spouse of a  decedent which qualifies for an estate tax marital deduction  under  any  tax  law of the state of New York or of the United States and the amount  or size of such disposition is defined by  the  will  in  terms  of  the  maximum marital deduction allowable under such tax law:    (1)   No  adjustment  shall  be  required  to  be  made  between  such  disposition and the other interests in the decedent's estate  by  reason  of  (A) any increase in the amount or size of such disposition resulting  from any election by the fiduciary, under such tax laws, to treat estate  administration expenses as income tax deductions over the amount or size  of such disposition had the contrary  election  been  made  or  (B)  any  increase or decrease in the amount or size of such disposition resulting  from an election by the fiduciary, under such tax laws, of an estate tax  valuation  date  other than the date of the decedent's death as compared  with the amount or size of such disposition had  the  contrary  election  been made.    (2)  Such  definition  shall  not  be  construed as a direction by the  decedent to the  fiduciary  to  exercise  any  election  respecting  the  deduction  of estate administration expenses or the determination of the  estate tax valuation date, which the fiduciary may have under  such  tax  laws,  only  in  such manner as will result in a larger allowable estate  tax marital deduction than if the contrary election had been made.