MARVIN MANDEL, Governor                            75

will be no trustee to receive the proceeds, payment shall be made by
the insurance company or other obligor to the personal representa-
tive of the person making such designation, unless otherwise pro-
vided by agreement.

(e)    Exemption from taxes and debts. Death benefits payable
as provided in this Section, unless paid to a personal representative
under the provisions of subsection (d), shall not be deemed to be
part of the decedent's estate, and shall not be subject to any obliga-
tion to pay taxes, debts or other charges enforceable against the
estate of the decedent, except as provided in Section 11-109.

(f)    Commingling of assets. Death benefits so held in trust may
be commingled with any other assets which may properly come into
such trust.

11-106. Tax elections by fiduciaries.

(a)    Unless otherwise expressly provided by a will or other con-
trolling instrument, under which a trust is created or other provi-
sion made whereby any person is given an interest in income, an
estate for years or for life, or other temporary interest in any trust
or other assets and, under any tax law of the United States, the
personal representative or other person acting in a fiduciary capacity
for the deceased maker of such will or other instrument (herein-
after called the "fiduciary"), is given an election to treat adminis-
tration expenses of the decedent's estate paid from or chargeable to
the principal of such trust or other assets either as income tax
deductions or estate tax deductions, and such fiduciary elects to treat
such expenses in whole or in part as income tax deductions, 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
trust or other assets.

(b)    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 the 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 increase 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 election by the
fiduciary, under such tax law, of an estate tax valuation date other
than the date of