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“circumstances under which it was made, including the situation
of the subject and of the parties * * * so that the judge is
placed in the position of those whose language the judge is
interpreting.” Or. Rev. Stat. sec. 42.220 (1999); see also Wade
v. Northup, supra at 457 (parol evidence may be used to interpret
the language of a general power of attorney).
The parties agree that the three powers of attorney at issue
in this case did not expressly authorize Ms. Thompson to make
gifts. The parties do not agree, however, whether the power to
make gifts can be inferred from the language of the powers of
attorney and the circumstances surrounding their execution.
Applying Oregon law, we examine the language of the powers of
attorney and the facts and circumstances surrounding decedent’s
execution of the powers of attorney to determine whether the
power to make gifts must be inferred in order to give effect to
decedent’s intent. Our goal is to ascertain whether decedent had
the intent to confer gift-giving power upon Ms. Thompson.
The March 12, 1992, No. 2 power, which was prepared by
decedent’s lawyer, appointed Ms. Thompson as decedent’s “agent
and attorney in fact” with power and authority to “Convey, sell,
mortgage, pledge, consign, lease and in any other manner deal in
and with my property, both real and personal.” (Emphasis added.)
The March 12, 1992, No. 2 power, also authorized Ms. Thompson “to
execute and acknowledge any and all instruments necessary or
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