Estate of Suzanne C. Pruitt - Page 17




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          the issue presented here as we believe the highest State court              
          would decide it.  See Commissioner v. Estate of Bosch, 387 U.S.             
          456 (1967); Estate of Goree v. Commissioner, T.C. Memo. 1994-331.           
              Under Oregon law, powers of attorney must be strictly                  
          construed.  See United States Natl. Bank v. Herron, 144 P. 661,             
          663 (Or. 1914); Wade v. Northup, 140 P. 451 (Or. 1914); Security            
          Sav. Bank v. Smith, 62 P. 794 (Or. 1900); Coulter v. Portland               
          Trust Co., 26 P. at 567.  The rule that a power of attorney must            
          be strictly construed, however, “does not require that it shall             
          be so construed as to defeat the intention of the parties.  * * *           
          A strained construction should never be given to defeat that                
          intention, nor to embrace in the power what was not intended by             
          the parties."  Wade v. Northup, supra at 458 (citing Hemstreet v.           
          Burdick, 90 Ill. 444 (1878)).  “[T]he intention of the donor of             
          the power is the great principle that governs”.  Brown v. Laird,            
          291 P. 352, 354 (Or. 1930).  Although the intention of the donor            
          ordinarily is gleaned from the language of the power of attorney,           
          see id., where the language of the power is broad and is not free           
          from ambiguity, Oregon law requires that we examine the                     


               12(...continued)                                                       
          1997); Fender v. Fender, 329 S.E.2d 430, 431 (S.C. 1985); F.M.              
          Stigler, Inc. v. H.N.C. Realty Co., 595 S.W.2d 158, 161 (Tex. Ct.           
          App. 1980); Bryant v. Bryant, 882 P.2d 169, 172 (Wash. 1994). In            
          contrast, at least two States have enacted statutes providing               
          that a general power of attorney contains an implied authority to           
          make gifts of the principal’s assets under certain circumstances.           
          See Ala. Code sec. 26-1-2.1 (Michie Supp. 1994); Va. Code Ann.              
          sec. 11-9.5 (Michie 1999).                                                  





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