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After the execution of the December 22, 1987, power, decedent
continued to make annual gifts of her property, periodically
increasing the amount of the gifts and the number of donees. In
February 1992, decedent again made substantial gifts to her
daughters, their husbands, and her grandchildren. We believe
this pattern of making annual gifts covering a period of 13 years
demonstrates, and is consistent with, decedent’s intention to
make annual gifts of her property until her death in order to
take full advantage of the annual per-donee gift tax exclusion,
thereby reducing the amount of estate tax her estate would owe
upon her death.
Decedent’s intention to make annual gifts to her children in
order to minimize her estate tax liability is demonstrated
further by her February 26, 1987, letter to her children in which
she stated: “it is better, to give to you now, instead of from a
will. Then most of it would be consumed by old Uncle Sam, who is
always hungry. We want you to enjoy it.” Decedent’s intention,
shown by annual gifts beginning in 1980 and stated clearly in her
1987 letter to her daughters, was to minimize the potential tax
liabilities of her estate by giving annual gifts to her family.
The testimony of decedent’s daughter also reinforces
petitioner’s argument that decedent intended to grant the power
to make gifts to her attorney-in-fact. Ms. Thompson testified
that she discussed the “gifting program” on numerous occasions
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