Estate tax apportionment dictates which beneficiaries bear the burden of estate or inheritance taxes. Clauses in wills or trusts can direct taxes to be paid from the residuary or apportioned among recipients proportionally. Without guidance, state default rules apply. Proper apportionment provisions prevent inequities, especially when non-probate assets with named beneficiaries pass outside the estate.

Drafting attorneys specify who pays estate or inheritance taxes. Advisors model outcomes so beneficiaries are treated as intended-especially when non-probate accounts or ILIT proceeds bypass the estate-and confirm funding so apportionment clauses are workable in practice.