- 25 -
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
7(...continued)
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
1995).
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”.
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NextLast modified: May 25, 2011