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him whether she specifically wanted to include the power to make
gifts in the powers of attorney, Mr. Walker responded: “I think
it might have been the other way around. I said that ‘this will
allow your daughter to do anything that you could do’, and we
specifically talked about the gifting.” The record amply
demonstrates that decedent relied upon Mr. Walker’s advice and
acted upon it. Decedent understood from conversations she had
had with Mr. Walker that lifetime gifts were an important estate
planning tool and that her powers of attorney authorized her
daughter to do anything decedent could do. It is reasonable,
therefore, for us to conclude on this record that decedent
intended the powers of attorney to include the power to make
gifts.
Finally, a review of decedent’s will confirms that the 1993
and 1994 gifts were to the same individuals who would have
inherited the properties under the terms of decedent’s will. In
her will, decedent bequeathed all her real and personal property
to her three daughters if she was not survived by her husband
(decedent’s husband died in November 1993).
Petitioner and respondent base their arguments on two
opinions of the Court of Appeals for the Fourth Circuit
interpreting Virginia State law, Estate of Ridenour v.
Commissioner, 36 F.3d 332 (4th Cir. 1994), affg. T.C. Memo. 1993-
41, and Estate of Casey v. Commissioner, 948 F.2d 895 (4th Cir.
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