Estate of Eleanor R. Gerson, Deceased, Allan D. Kleinman, Executor - Page 48

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          well that the legislative history--such as it is--reveals that              
          the overall purpose of the transition provision was to ratify               
          only unavoidable generation-skipping transfers.                             
               There is not, then, an “unambiguously expressed intent” to             
          the contrary.  I readily admit that the dissent’s construction,             
          following Bachler and Simpson, is reasonable too.  But, as the              
          Sixth Circuit noted in Peoples Federal S&L, “there may be several           
          permissible constructions.  If there are gaps left by silence or            
          ambiguity of the statutes in question, agencies may fill the gaps           
          with necessary rules, providing they are reasonable, and courts             
          should not interfere with this process.”  948 F.2d at 300.                  
               And reasonableness is all that’s required in step two of               
          Chevron.  In gift and estate tax law, the IRS has for years                 
          consistently treated a general power of appointment as equivalent           
          to ownership.  See Estate of Kurz v. Commissioner, 101 T.C. 44              
          (1993), supplemented and reconsideration denied T.C. Memo. 1994-            
          221, affd. 68 F.3d 1027 (7th Cir. 1995).  Because the holder of a           
          general power controls the ultimate disposition of trust                    
          property, that property is includable in the gross estate for               
          estate tax purposes, section 2041, and the transfer of property             
          by the exercise or release of the power is deemed a transfer by             
          the person in possession of the power, section 2514(b).  In                 









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