Estate of Irene H. Govern, Deceased, Revocable Trust of Charles S. Govern, Sr., Transferee, June G. Hall, Trustee and Transferee, June G. Hall, Transferee of Transferee, Muriel McNulty, Transferee o - Page 12

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          6324(a)(2) is in the nature of a direct and primary obligation              
          created by Federal statute.  Groetzinger v. Commissioner, supra             
          at 314.                                                                     
               First, petitioner asserts that the Marital Trust assets                
          "passed free of the trust" when decedent exercised her general              
          power of appointment.  Second, petitioner asserts that the                  
          Marital Trust was terminated on decedent's death (rather than               
          created on decedent's death), and petitioner was relieved of                
          possession (rather than came into possession) of the Marital                
          Trust property on decedent's death by the exercise of the power             
          of appointment.                                                             
               Decedent's estate's exercise of the power of appointment did           
          not automatically dissolve the trust or vest the ownership of the           
          trust property in Charles L. Govern II, the appointee.  A trust             
          continues for a reasonable period during which the trustee has              
          the power to perform necessary acts to wind up the affairs of the           
          trust.  Govern v. Hall, supra at 877 (citing In re McLaughlin's             
          Trust, 361 N.W.2d 43, 46 (Minn. 1985)); Bogert, Trust & Trustees,           
          sec. 1010, at 448 (2d ed. 1983).  Petitioner acted in her                   
          capacity as trustee of the Marital Trust property for several               
          years after decedent's death.  Although decedent died in October            
          of 1983, petitioner did not execute and deliver a deed conveying            
          the Marital Trust property to Charles L. Govern II, the                     
          appointee, until February of 1992.  Moreover, petitioner filed              
          decedent's estate's Federal estate tax return, in which she                 




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