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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, the
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