- 48 - Since Ga. Code Ann. section 53-2-115 broadly permits beneficiaries to disclaim “any powers over or rights with respect to such property”, we see no grounds for questioning the efficacy under State law of the descendants’ disclaimers of rights to corpus. Thus, for reasons analogous to those explained above in connection with the children’s right to receive income, we conclude that the disclaimers likewise extinguished the trustee’s authority to distribute principal. As regards Mrs. Lassiter’s inter vivos power of appointment, authority of this type is declared by regulation to be incompatible with the definition of a qualifying income interest for life: “For purposes of section 2056(b)(7)(B)(ii)(II), the surviving spouse is included within the prohibited class of powerholders referred to therein.” Sec. 20.2056(b)-7(d)(1), Estate Tax Regs. Consequently, this power must be negated by the 1995 disclaimers in order for the Item V trust to be eligible for QTIP treatment. With respect to the adult, minor, and unborn or unascertained descendants by or on whose behalf disclaimers were executed, the previously quoted Example (4) of section 20.2056(b)-7(h), Estate Tax Regs., supports the conclusion that their renunciations were equally sufficient to extinguish their right to receive under Mrs. Lassiter’s inter vivos power. The same would be true for Mr. Smith, Cathy’s spouse. However, thePage: Previous 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Next
Last modified: May 25, 2011