§ 975. Liability for tax. (a) Duty of executor to pay tax. (1) The tax
imposed by this article shall be paid by the executor, who shall
thereupon charge the same against and collect it from the persons
interested in the estate in accordance with the rules of apportionment
of section 2-1.8 and other relevant provisions of the estates, powers
and trusts law.

(2) If the tax imposed by this article, or any part thereof, is paid
by, or collected out of, that part of the estate passing to or in the
possession of any person other than the executor in his capacity as
such, such person shall be entitled to reimbursement out of any part of
the estate still undistributed or by a just and equitable contribution
by the persons whose interest in the estate of the decedent would have
been reduced if the tax had been paid before the distribution of the
estate or whose interest is subject to equal or prior liability for the
payment of taxes, debts or other charges against the estate, it being
the purpose and intent of this section that so far as is practicable and
unless otherwise directed by the will or non-testamentary instrument of
the decedent, the tax shall be paid out of the estate before its
distribution.

(b) Liability of executor. An executor who pays, in whole or in part,
any debt due by the estate for which he or she acts, except for a debt
owed to the United States or to New York state, or who distributes any
asset of the estate, prior to the payment in full of the tax imposed by
this article, shall be answerable in his or her own person and estate
for the payment of such tax to the extent that the assets of the estate
have been so paid out or distributed. The liability of the executor
under this subsection shall continue until his or her discharge as
provided in section nine hundred eighty-one of this article.

(c) Liability of life insurance beneficiaries. Unless the decedent
directs otherwise in his or her will, if any part of the New York gross
estate on which tax has been paid consists of proceeds of policies of
insurance on the life of the decedent receivable by a beneficiary other
than the executor, the executor shall be entitled to recover from such
beneficiary such portion of the total tax paid as the proceeds of such
policies bear to the federal taxable estate, reduced by the value of any
real or tangible personal property located outside New York state, and
increased by any federal estate tax deductions attributable to such
property. If there is more than one such beneficiary, the executor shall
be entitled to recover from such beneficiaries in the same ratio. In the
case of such proceeds receivable by the surviving spouse of the decedent
for which a deduction is allowed under section two thousand fifty-six of
the internal revenue code (relating to marital deduction), this section
shall not apply to such proceeds.

(d) Liability of recipients of property over which decedent had power
of appointment. Unless the decedent directs otherwise in his or her
will, if any part of the New York gross estate on which the tax has been
paid consists of the value of property included in the gross estate
under section two thousand forty-one of the internal revenue code, the
executor shall be entitled to recover from the person receiving such
property by reason of the exercise, nonexercise, or release of a power
of appointment such portion of the total tax paid as the value of such
property bears to the federal taxable estate, reduced by the value of
any real or tangible personal property located outside New York state,
and increased by any federal estate tax deductions attributable to such
property. If there is more than one such person, the executor shall be
entitled to recover from such persons in the same ratio. In the case of
such property received by the surviving spouse of the decedent for which
a deduction is allowed under section two thousand fifty-six of the
internal revenue code (relating to marital deduction), this section
shall not apply to such property.

(e) Liability of transferees and others. If the tax imposed by this
article is not paid when due, then the spouse, transferee, trustee,
surviving tenant, person in possession of the property by reason of the
exercise, nonexercise, or release of a power of appointment, or
beneficiary, who receives, or has on the date of the decedent's death,
property included in the New York gross estate to the extent of the
value, at the time of the decedent's death, of such property, shall be
personally liable for such tax. Any part of such property transferred by
(or transferred by a transferee of) such spouse, transferee, trustee,
surviving tenant, person in possession of property by reason of the
exercise, nonexercise, or release of a power of appointment, or
beneficiary, to a bona fide purchaser, mortgagee, or pledgee, for an
adequate and full consideration in money or money's worth shall be
divested of the lien provided in section nine hundred eighty-two of this
article and a like lien shall then attach to all the property of such
spouse, transferee, trustee, surviving tenant, person in possession,
beneficiary, or transferee of any such person, except any part
transferred to a bona fide purchaser, mortgagee, or pledgee for an
adequate and full consideration in money or money's worth. Provided,
however, where any interest in such property was held by the decedent
and the decedent's surviving spouse as tenants by the entirety, such
interest in such property shall be divested of the lien provided in
section nine hundred eighty-two of this article.