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record contains no disclaimers which reference Mrs. Lassiter’s
power to appoint to other, yet undetermined, spouses of
descendants.
Under one potential interpretation of the Georgia disclaimer
statute, no further renunciation would be necessary to eliminate
Mrs. Lassiter’s power to distribute to such contingent spouses.
Ga. Code Ann. section 53-2-115(c) specifies that disclaimed
interests pass as if the person renouncing had predeceased the
decedent. Accordingly, if all descendants are deemed to have
died before Mr. Lassiter with respect to the inter vivos power,
logic would appear to demand closure at his death of the class of
possible spousal appointees.
Nonetheless, we find it unnecessary to rely solely on this
interpretation of State law in that we conclude Mrs. Lassiter’s
disclaimer of her inter vivos power, in her individual capacity,
was effective and thereby terminated the interests of all
potential appointees. The parties disagree as to whether Mrs.
Lassiter’s retention of a testamentary power of appointment over
the trust invalidated her disclaimer of the inter vivos power.
We decide, primarily on the basis of section 25.2518-2(e)(2),
Gift Tax Regs., that it did not.
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