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The decision of the Court of Appeals for the Fourth Circuit
in Estate of Ridenour is also distinguishable.14 One year after
Estate of Casey was decided, the Virginia legislature enacted a
statute recognizing an implied gift power in a power of attorney
which grants broad general powers to the attorney-in-fact.15 In
Estate of Ridenour, the Court of Appeals for the Fourth Circuit,
14We acknowledge, however, that many of the facts in Estate
of Ridenour v. Commissioner, 36 F.3d 332, 335 (4th Cir. 1994),
affg. T.C. Memo. 1993-41, are similar to the facts at hand. For
example, the decedent, Joseph Ridenour (Joseph), had a history of
making gifts to his family that were, in part, tax driven. In
1987, Joseph suffered from acute renal failure and could no
longer effectively communicate with others. Acting pursuant to a
power of attorney, which contained no language limiting the
authority to business transactions or requiring consideration in
exchange for the attorney-in-fact’s disposition of property,
Joseph’s son, James, made substantial cash gifts to family
members, including himself, from Joseph’s checking account.
James wrote the checks on Mar. 27, 1987; Joseph died on Apr. 15,
1987. The gifts were not included as part of Joseph’s gross
estate on his Federal estate tax return.
15Va. Code Ann. sec. 11-9.5 (Michie 1999) provides, in
pertinent part, as follows:
� 11-9.5. Gifts under power of attorney.--A. If any
power of attorney or other writing (i) authorizes an
attorney-in-fact or other agent to do, execute, or
perform any act that the principal might or could do or
(ii) evidences the principal’s intent to give the
attorney-in-fact or agent full power to handle the
principal’s affairs or deal with the principal’s
property, the attorney-in-fact or agent shall have the
power and authority to make gifts in any amount of any
of the principal’s property to any individuals or to
organizations described in �� 170(c) and 2522(a) of the
Internal Revenue Code or corresponding future
provisions of federal tax law, or both, in accordance
with the principal’s personal history of making or
joining in the making of lifetime gifts.
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