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This entry was published on 2014-09-22
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SECTION 2-1.13
Certain formula clauses to be construed to refer to the federal
Estates, Powers & Trusts (EPT) CHAPTER 17-B, ARTICLE 2, PART 1
§ 2-1.13 Certain formula clauses to be construed to refer to the federal

estate and generation-skipping transfer tax laws applicable

to estates of decedents dying after December thirty-first,

two thousand nine and before January first, two thousand

eleven

(a)(1) If by reason of the death of a decedent property passes or is
acquired under a beneficiary designation, a will or trust of a decedent
who dies after December thirty-first, two thousand nine and before
January first, two thousand eleven, that contains a bequest or other
disposition based upon the amount of property that can be sheltered from
federal estate tax by referring to the "unified credit", "estate tax
exemption", "applicable exclusion amount", "applicable exemption
amount", "applicable credit amount", "marital deduction", "maximum
marital deduction", "unlimited marital deduction", "charitable
deduction", "maximum charitable deduction" or similar words or phrases
relating to the federal estate tax, or that measures a share of an
estate or trust based on the amount that can pass free of federal estate
taxes, or that is otherwise based on a similar provision of federal
estate tax then such beneficiary designation, will or trust shall be
deemed to refer to the federal estate tax law as applied with respect to
decedents dying in two thousand ten, regardless of whether an election
is made not to have the federal estate tax apply to a particular estate.

(2) If by reason of the death of a decedent property passes or is
acquired under a beneficiary designation, a will or trust of a decedent
who dies after December thirty-first, two thousand nine and before
January first, two thousand eleven, that contains a bequest or other
disposition based upon the amount of property that can be sheltered from
federal generation-skipping transfer tax by referring to the
"generation-skipping transfer tax exemption", "GST exemption",
"generation-skipping transfer tax", "GST tax" or similar words or
phrases that measures a share of an estate or trust based on the amount
that can pass free of federal generation-skipping transfer taxes, or
that is otherwise based on a similar provision of federal
generation-skipping transfer tax law, then such beneficiary designation,
will or trust shall be deemed to refer to the federal
generation-skipping transfer tax law in effect in two thousand ten,
regardless of whether an election is made not to have the federal estate
tax apply to a particular estate.

(3) This paragraph shall not apply to a beneficiary designation, will
or trust that manifests an intent that a contrary rule shall apply.

(b) The executor, trustee or other interested person under a
beneficiary designation, will or trust referred to in paragraph (a) of
this section may bring a proceeding to determine whether the beneficiary
designation, will or trust manifests a contrary intention within the
meaning of subparagraph three of paragraph (a) of this section. In any
such proceeding, extrinsic evidence may be admitted to establish the
decedent's intent.

(c) Any proceeding described in paragraph (b) of this section must be
commenced by the date which is (1) twenty-four months following the date
of death of the decedent, testator or grantor or (2) six months
following the day on which the chapter of the laws of two thousand
eleven which amended this paragraph became a law, whichever date is
later, and not at any time thereafter. Notwithstanding the foregoing,
the time to commence such a proceeding may be extended, in the
discretion of the court, on a petition showing reasonable cause and on
notice to such persons and in such manner as the court may direct.