Estate of Henry A. Lassiter, deceased, Paula Ann Masters Lassiter, administrator, C.T.A. - Page 37

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          between encroachment and trust res.  As regards the Item IV trust             
          and the Item V trust shares to be established for the descendants             
          after Mrs. Lassiter’s death, the trustee is “authorized to                    
          encroach on the corpus of the property” and “authorized to                    
          encroach upon the principal of the share”, respectively.  In                  
          contrast, encroach is never the verb used in phrases expressly                
          addressing payment of income.  We thus have no basis for deciding             
          that an unconventional sense is meant in Item V(b) and conclude               
          that the instruction is not germane to our discussion of the                  
          surviving spouse’s income rights.  Accordingly, we move to                    
          analysis of whether Georgia law affords Mrs. Lassiter the right               
          to all income at least annually.                                              
               The regulations under section 2056(b)(7) which interpret                 
          this requirement provide generally that                                       
               The provisions of local law are taken into account in                    
               determining whether the conditions of section                            
               2056(b)(7)(B)(ii)(I) are satisfied.  For example,                        
               silence of a trust instrument as to the frequency of                     
               payment is not regarded as a failure to satisfy the                      
               requirement that the income must be payable to the                       
               surviving spouse annually or more frequently unless                      
               applicable local law permits payments less frequently.                   
               [Sec. 20.2056(b)-7(g), Estate Tax Regs.]                                 
          The regulations also offer more specific guidance for certain                 
          issues by indicating that the principles of section 20.2056(b)-               
          5(f), Estate Tax Regs., apply in determining whether the                      
          surviving spouse is entitled to all income.  See sec. 20.2056(b)-             
          7(d)(2), Estate Tax Regs.  Among the principles so referenced is              

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