- 12 - 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 shePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011