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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
following:
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
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