566                               LAWS OF MARYLAND                        [CH. 239

(hereinafter called the "fiduciary"), is given an election to treat
administration expenses of the decedent's estate paid from or
chargeable to the principal of such property or fund either as in-
come tax deductions or as estate tax deductions, and such fiduciary
elects to treat such expenses in whole or in part as income tax de-
ductions, with the result that estate taxes imposed under such law
and paid from or chargeable to such principal are greater than if
the contrary election had been made, an amount equal to such
difference in such estate taxes shall be reimbursed to such principal
from the income of such property or fund.

(b)    Unless otherwise expressly provided by a will, or other
controlling instrument, under which a gift 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 United States
and the amount or size of such gift is defined by the will or other
controlling instrument in terms of the maximum marital deduction
allowable under such tax law, no adjustment shall be required to be
made between such gift and the other interests in the decedent's
estate, or governed by such instrument, by reason of (i) any in-
crease in the amount or size of such gift resulting from any election
by the fiduciary, under such tax law, to treat estate administration
expenses as income tax deductions over the amount or size of such
gift had the contrary election been made, or (ii) any increase or
decrease in the amount or size of such gift resulting from an elec-
tion by the fiduciary, under such tax law, of an estate tax valuation
date other than the date of the decedent's death as compared with
the amount or size of such gift had the contrary election been made.

(c)    Unless otherwise expressly provided by a will, or other con-
trolling instrument, under which a gift 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 United States and
the amount or size of such gift is defined by the terms of the will,
or other controlling instrument, in terms of the maximum marital
deduction allowable under such tax law, such definitions shall not be
construed as a direction by the decedent to the fiduciary to exercise
any election respecting the deduction of estate administration ex-
penses or the determination of the estate tax valuation date, which
the fiduciary may have under such tax law, only in such manner as
will result in a larger allowable estate tax marital deduction than if
the contrary election had been made.

Sec. 2. And be it further enacted, That this Act shall take effect,
and shall be applicable to estates of persons dying on or after,
June 1, 1967.

Approved April 14, 1967.

CHAPTER 239
(House Bill 398)

AN ACT to repeal and re-enact, with amendments, Section 14A of
Article 77 of the Annotated Code of Maryland (1965 Replace-