In re the Accounting of Guaranty Trust Co.

Frankenthaler, S.

The question presented herein is whether the beneficiary of a certain testamentary gift is obliged to contribute to the payment of taxes assessed against the estate. If under the terms of the will an annuity was created, the amount of the taxes apportioned to the source of the annuity must be paid initially out of that fund, which, however, would be reimbursed by amortization of the tax out of the periodic payments, the impact of the taxes being thus ultimately borne by the annuitant (Matter of Tracy, 179 N. Y. 501; Matter of Glauber, 196 Misc. 646). If, on the contrary, the…