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r ~~---~ci~~a~, 2 9 10 11 12 13 14 15 16~ 17 1 18 1 19j 2Q '. 21' 22 23 24 25 26 27 28 29 3€? 3I 32 a.rw asncAs WILIbli¢NLl. $YANS • ALCl4@.6. ., fi. 491 „C Yi:l,ic9lt. AklLOM~ 5448 Said amount shall be distributed from the deceased Trustoe's portion of the-trust estate, and shall qualify as a marital deduction for Federal estate tax purposes and shall be applied against and deducted from the taxable estate of the deceased Trustor. The property to be so allocated shall consist of an amount equivalent to the maximum allowable marital deduction, for Federal estate tax purposes, less the value of the property interests that qualify for the marital deduction and that have passed or will pass to the surviving Trustor under other provisions of this Trust Agreement, or under the deceased Trustor's will, oh by nonprobate transfers, or otherwise. For purposes hereof, all terms as used herein that relate to the Federal tax laws sha17 be understood to refer and relate to the Federal =~~ -yaws as set- f[2!„i~ _un~QN~~?g-$r~~ion_s_of_ thg~__ internal Revenue Code of 1954, as amended, including, to the extent possible, the effects of any changes under the Tax Reform Act of 1976 and under all other amendments to the Internal Revenue Code. In applying the foregoing, the foil owing additional provisions shall apply: (1} For purposes of computation of the amount of the marital deduction, the values as finally de- termined for Federal estate tax purposes shall con- trol, but for purposes of allocation of property as betwe^n the Marital Trust and the Family Trust, values at the time of allocation shall be used. The distribution of assets made pursuant to tfie afore- rt~ntioned allocation may be in cash or in kind or partly in cash and partly in kind; provided, however, that each asset distributed in kind shall be valued for such purposes as of the date of allocation. (2} No property shall be allocated from the deceased Trustor's portion of the trust estate to the Marital Trust that does not qualify for the mari- tal deduction. furthermore, property or property rights representing income in respect of a decedent shall not be allocated to the Marital Trust, When such property is excluded, other property of equiva- lent value shall be substituted and allocated to the Marital Trust. (3} Trust property that may include an element of unrealized gain for Federal income tax purposes shall be allocated or apportioned between the Marital Trust and the Family Trust in such manner as the Trus- tee shall determine in the Trustee's sole discretion; provided, however, that if the Marital Trust is to receive a greater share of such unrealized gain than its proportionate share based on relative asset values, then the approval of the surviving Trustor shall be required. (4} Notwithstanding the foregoing provisions, if the application of the marital deduction formula as expressed in the foregoing paragraphs results in no Federal estate taxes Ewing payable by the estate of first Trustor to die, then the property being allocated to the Marital Trust under the foregoing formula shall be reduced to the extent necessary to increase the de- ceased Trustor's taxable estate to the maximum amount -9-