Estate of Aldo H. Fontana, Deceased, Richard A. Fontana and Joan F. Rebotarro, Co-Executors - Page 8




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               taxed in the same degree as other property over which                  
               he exercises the same authority.  * * *  [H. Rept. 767,                
               65th Cong. 2d Sess. 41-42 (1918), 1939-1 C.B. (Part 2)                 
               86, 101.]                                                              
               In Estate of Mellinger v. Commissioner, supra at 35-36, we             
          reasoned that although section 2044 required that property held             
          by the QTIP trust be included in Harriett’s (i.e., the surviving            
          spouse’s) gross estate, the property “[did] not actually pass to            
          or from” her, and that she “at no time” possessed “control” or              
          had “any power of disposition over” the property.  Unlike                   
          Harriett, who could not control the ultimate disposition of the             
          property held by the QTIP trust, Aldo possessed a testamentary              
          GPA, which allowed him to control the ultimate disposition of the           
          stock.  Thus, pursuant to the GPA, Aldo, at the moment of death             
          (i.e., the critical moment for estate tax valuation purposes),              
          had control and power of disposition over the property.                     
          Accordingly, the Ledyard stock subject to Aldo’s testamentary GPA           
          must be aggregated with Ledyard stock Aldo owned outright.                  
          2.   Family Attribution Rules                                               
               The estate further contends that aggregation is                        
          inappropriate because the Ledyard stock held by Trust A should              
          not be attributed to Aldo.  The estate, relying primarily on                
          Propstra v. United States, 680 F.2d 1248 (9th Cir. 1982), Estate            
          of Bright v. United States, 658 F.2d 999 (5th Cir. 1981), and               
          Estate of Bonner v. United States, supra, and sections 267, 318,            







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