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not the other. We conclude that Georgia law enables the Item V
trust to satisfy the requirement of section 2056(b)(7)(B)(ii)(I).
B. No Power To Appoint
We turn next to the requirement of section
2056(b)(7)(B)(ii)(II) that no person have a power to appoint
trust property to any person other than the surviving spouse. In
addition to the specific references to income addressed in the
preceding discussion, several provisions of the Item V trust can
be construed generally as granting a power to appoint trust
property. Three such powers may be exercised and given effect
during Mrs. Lassiter’s life: (1) The trustee may use principal
for the support in reasonable comfort of the surviving spouse;
(2) the trustee may use principal for the support and education
of Mr. Lassiter’s children; and (3) Mrs. Lassiter may direct the
trustee at any time to turn trust property over to Mr. Lassiter’s
descendants or their spouses. The exercise of a fourth power,
Mrs. Lassiter’s testamentary power of appointment, would be given
effect at her death.
With respect to the trustee’s power to distribute to Mrs.
Lassiter, regulations again provide specifically that such a
power is not inconsistent with the marital deduction:
An income interest in a trust will not fail to
constitute a qualifying income interest for life solely
because the trustee has a power to distribute principal
to or for the benefit of the surviving spouse. The
fact that property distributed to a surviving spouse
may be transferred by the spouse to another person does
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