Estate of Henry A. Lassiter, deceased, Paula Ann Masters Lassiter, administrator, C.T.A. - Page 43

                                        - 43 -                                          
          distribution has so been vitiated of any potential for protecting             
          the interests of any other beneficiary, a Georgia court would                 
          deem the subject trust instrument to have been rendered silent as             
          to timing and frequency of payment, such that the default rule of             
          Ga. Code Ann. section 53-12-190(c) would require not less than                
          annual payment of all income to the surviving spouse.  We so                  
          conclude here.                                                                
               Furthermore, we are equally satisfied that administrative                
          powers granted to the trustee by the 1970 will do not                         
          impermissibly negate Mrs. Lassiter’s income rights for purposes               
          of the section 2056 deduction.  Although the terms of the will                
          authorize the trustee discretionally:  (1) To apportion or                    
          allocate receipts and payments among principal and income, and                
          (2) to hold unproductive property, regulations provide that                   
          neither of these powers is fatal to the marital deduction in                  
          circumstances such as those now before the Court.                             
               Section 20.2056(b)-5(f)(4), Estate Tax Regs., contains the               
               Provisions granting administrative powers to the                         
               trustee will not have the effect of disqualifying an                     
               interest passing in trust unless the grant of powers                     
               evidences the intention to deprive the surviving spouse                  
               of the beneficial enjoyment required by the statute.                     
               Such an intention will not be considered to exist if                     
               the entire terms of the instrument are such that the                     
               local courts will impose reasonable limitations upon                     
               the exercise of the powers.  Among the powers which if                   
               subject to reasonable limitations will not disqualify                    
               the interest passing in trust are the power to                           
               determine the allocation or apportionment of receipts                    

Page:  Previous  33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  Next

Last modified: May 25, 2011