2006 New York Code - Powers, Duties And Limitations

 
  § 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.