Estate of Floy M. Christensen - Page 21

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               In further support of its position that the transfers of               
          funds represented by the November 1995 checks and the January               
          1996 checks constitute nontaxable gifts made by decedent, the               
          estate argues:                                                              
                    Regulation � 25.2511-1(g)(1) makes it abundantly                  
               clear that Floy Christensen did not have to possess                    
               donative intent at the time of the Gift Checks to have                 
               made a gift.  Instead, the Regulation applies an objec-                
               tive facts and circumstances test.  The Regulation                     
               eliminates any doubt as to that test in this fact                      
               pattern through an example found in the Regulations,                   
               � 25.2511-1(h)(4), which example deals with a joint                    
               bank account and gifts made from that account.                         
          According to the estate, the example found in sec. 25.2511-                 
          1(h)(4), Gift Tax Regs., “impliedly recognizes” that, regardless            
          of donative intent on the part of the transferor, checks properly           
          drawn on a joint account to others constitute gifts.  The estate            
          points to sec. 25.2511-1(c)(1), Gift Tax Regs., in further                  

               5We agree with the estate’s acknowledgment regarding dece-             
          dent’s power of attorney.  Section 11.94.050(1) of the Revised              
          Code of Washington Annotated (West 1998) (RCWA 11.94.050(1))                
          provides that an attorney in fact does not have the power, unless           
          specifically otherwise provided in the power of attorney, to make           
          any gifts of property owned by the principal.  Decedent’s power             
          of attorney authorizing Mr. Christensen and Ms. Hastie to act as            
          her attorneys in fact does not specifically provide that those              
          individuals were authorized to make gifts of property owned by              
          decedent.  We conclude that decedent’s power of attorney did not            
          authorize Mr. Christensen and Ms. Hastie to make gifts on her               
          behalf.  Where, as here, a power of attorney is silent with                 
          respect to any authority to make gifts of the principal’s prop-             
          erty, the agent may not read such authority into the instrument.            
          See RCWA 11.94.050(1).                                                      

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