Firstar Trust Co. v. First National Bank of Kenosha

Daniel H. Cooney's will established a marital trust whereby his wife, Dorothy B. Cooney, received a life interest and the remainder beneficiaries designated by Daniel would receive the remaining principal upon Dorothy's death. Daniel's estate elected to treat the trust as a qualified terminal interest property (QTIP) trust, thereby deferring the payment of the federal and state estate taxes until Dorothy's death.

The trustee for the QTIP trust raises two issues in this appeal. The first issue is whether a pay-all-taxes clause in Dorothy's will exonerated the remainder beneficiaries from…