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Implied Trusts
We apply Georgia State law to determine what interest the
QTIP trust had in the South Property and North Property on the
date of decedent’s death. See Commissioner v. Estate of Bosch,
387 U.S. 456, 465 (1967); Estate of Spruill v. Commissioner, 88
T.C. 1197, 1216 (1987). Because the QTIP trust obtained its two
undivided interests in the subject property from the limited
partnership by quitclaim deed, the QTIP trust received only such
interest as the limited partnership possessed at the time of the
conveyance. See Chatham Amusement Co. v. Perry, 117 S.E.2d 320,
325 (Ga. 1960).
Petitioner contends that when the limited partnership
conveyed the undivided interests in the subject property to the
QTIP trustee in 1988, the limited partnership held any beneficial
interests in the timber and pecan orchards in implied resulting
trusts in favor of Walter and Betty.
Determining Applicable Georgia Statutory Law
As a threshold matter, we must determine the appropriate
Georgia statutory law to apply to the facts of this case.
Effective July 1, 1991, chapter 12, regarding trusts, of title 53
of the Official Code of Georgia Annotated was repealed and
reenacted to adopt the provisions of the Georgia Trust Act, which
rewrote and reorganized the provisions of prior statutory law
relating to implied trusts. The Georgia statutory law in effect
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