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decedent had no testamentary powers over the final year's amount,
such amount should not be included in her gross estate.
Section 2041(a)(2) requires inclusion of the value of "any
property with respect to which the decedent has at the time of
his death a general power of appointment * * * ". The exceptions
to the definition of general power of appointment listed in
section 2041(b) do not include a power only exercisable during
the holder's lifetime. The inability of decedent to dispose of
the property at her death does not prevent the inclusion of the
final year's amount in her gross estate under section 2041(a)(2).
In conclusion, decedent's power over the trust had not
lapsed at the time of her death. Thus, section 2041(b)(2) does
not apply to the year of her death. We hold that the final
year's amount ($67,458.50) is includable in her gross estate
under section 2041(a)(2).
In keeping with the above holding and to allow for
additional estate tax deductions for certain administration
expenses under section 2053(a)(2),
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011