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3(f), Example (3), Estate Tax Regs. Decedent had an unrestricted
power to distribute the corpus of the Marital Fund to herself by
reason of her power of withdrawal.
In addition, the Sidney Gore Trust declaration gave decedent
“the power to appoint the principal and any undistributed income,
to any person” by a provision in her will and authorized the
trustees, upon decedent’s death, to “distribute the then
remaining principal and undistributed income in the Marital
Trust, to such appointee or appointees (including the Estate of
my Wife), in such manner as my Wife may appoint by her Last Will
and Testament.” Such language is sufficient to create a general
power of appointment, sec. 20.2041-1(c)(1), Estate Tax Regs., and
respondent conceded as much in his answer in docket No. 468-02.
If any assets remained in the Marital Trust at decedent’s death,
section 2041(a)(2) requires that the value of those assets be
included in decedent’s gross estate.
B. Section 2036
A decedent’s gross estate includes the value of property
interests transferred by the decedent during his or her lifetime
if the decedent retained for life the possession or enjoyment of,
or the right to the income from, the transferred property. Sec.
2036(a)(1). Petitioner maintains that section 2036(a) is
inapplicable because decedent completed a transfer of the Marital
Fund assets to GFLP before her death and did not retain enjoyment
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Last modified: November 10, 2007