- 53 -
proscribed by section 2056(b)(7)(B)(ii)(II). Mrs. Lassiter’s
interest therein thus constitutes a qualifying income interest
for life, and the estate is entitled to a deduction pursuant to
section 2056(b)(7).
We conclude with a few brief comments on several of the
additional arguments raised by the parties. First, both
respondent and the estate advocate positions regarding the
validity of the disclaimer executed by Mrs. Lassiter in her
capacity as trustee. Because impermissible interests in the Item
V trust were effectively disclaimed by other renunciations, and
because Georgia law eliminates potentially suspect accumulation
or administrative powers in these circumstances, the trustee
disclaimer is unnecessary for qualification. To address its
validity would be moot. Due to possible broader implications,
however, we do say a few words about respondent’s general
statement that, in interpreting the 1970 will, we must disregard
all of Mrs. Lassiter’s actions as trustee, apparently on the
grounds that her appointment fails to comply with the terms of
Item X of the will. Respondent seems to maintain that Item X
limits the permissible trustee to a corporate entity. We
disagree.
While the will may limit beneficiaries to appointment of a
corporate trustee when they choose to exercise their right to
remove and replace an acting trustee, the document specifies no
Page: Previous 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 NextLast modified: May 25, 2011