Estate of Floy M. Christensen - Page 25

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          estate has failed to show that the transfers of those funds                 
          constitute nontaxable gifts.  The parties agree that if the Court           
          were to find that the transfers of funds represented by the                 
          November 1995 checks and the January 1996 checks do not consti-             
          tute nontaxable gifts, the determination in the notice with                 
          respect to those funds should be sustained.  Consequently, we               
          sustain that determination.                                                 
          Decedent’s Power To Withdraw                                                
               The estate concedes that, unless one of the exceptions in              
          section 2041(b)(1)(A), (B), or (C) applies to decedent’s power to           
          withdraw, that power constitutes a general power of appointment             
          as defined in section 2041(b)(1), and 5 percent of the value of             
          the property with respect to which decedent held that power for             
          1996 is includible in decedent’s gross estate.  The estate                  
          contends, however, that the exception in section 2041(b)(1)(A)8             
          applies to decedent’s power to withdraw.  According to the                  

          Wash. Rev. Code Ann. sec. 62A.4-403 (West 1995).  Check Nos.                
          1363, 1364, 1834, and 1835 did not clear Seafirst Bank until                
          after the date of decedent’s death.  As of the date of her death,           
          decedent had not relinquished control over the funds represented            
          by those four checks, and delivery of those four checks did not             
          perfect monetary gifts to the payees indicated on those checks.             
          See Wash. Rev. Code Ann. secs. 62A.3-408 and 62A.4-403 (West                
               8Section 2041(b)(1)(A) excepts from the definition of a                
          general power of appointment “A power to consume, invade, or                
          appropriate property for the benefit of the decedent which is               
          limited by an ascertainable standard relating to the health,                
          education, support, or maintenance of the decedent”.                        

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