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$220,593 and issued a statutory notice of deficiency to the
estate.
On October 1, 2001, Evelyn L. Davis filed a “NOTICE OF
IRREVOCABLE EXERCISE OF GENERAL POWER OF APPOINTMENT”, which
provides:
I, EVELYN DAVIS, the holder of the power to distribute
income under the RALPH H. DAVIS DECLARATION OF TRUST DATED
FEBRUARY 24, 1993 as amended April 9, 1996, pursuant to
Paragraph 2 of said Amendment, do hereby irrevocably
exercise my right to receive all of the income from this
trust for the balance of my life.
I do hereby exercise this instruction irrevocably, and
hereby order that all of the income [be] paid to me quarter-
annually or more frequently if necessary.
This exercise is effective as of the date of death of
my husband, RALPH H. DAVIS, pursuant to his instructions and
intent as expressed to me.
Discussion
Section 2001 imposes a tax on the transfer of the taxable
estate of all persons who are citizens or residents of the United
States at the time of death. The amount of the tax depends on
the size of the taxable estate, sec. 2001(b), which is equal to
the value of the gross estate less deductions. Sec. 2051; see
Estate of Armstrong v. Commissioner, 119 T.C. 220 (2002).
Section 2056(a) allows a marital deduction from a decedent’s
gross estate for the value of the property interests passing from
the decedent to a decedent’s surviving spouse. Estate of Clack
v. Commissioner, 106 T.C. 131, 137 (1996).
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