Brief Fact Summary. Plaintiff Kathleen Best (Plaintiff), Personal Representative of the Estate of Deceased Alma Anderson (Decedent) and daughter of Deceased, moves for summary judgment and claims a refund for a federal estate tax payment, with interest, for an Internal Revenue Service (IRS) deficiency assessment. Plaintiff argues that the trust corpus should not be included in Decedent’s estate. The United States (Respondent) argues that the trust corpus is includable.
On a motion for summary judgment, if there is no genuine issue as to any material fact, the moving party is entitled to judgment as a matter of law.View Full Point of Law
Issue. Did the IRS properly include in the gross estate of Decedent the corpus of a trust over which the Decedent had merely an invasionary power limited by an ascertainable standard?
Held. No. The motion for summary judgment should be granted. The language in trust related to the wife’s comfort, support, and maintenance confers an invasionary power limited by an ascertainable standard. The use of the word “comfort” is limited by the term “required” and therefore implies more than the minimum necessary for mere survival, but nevertheless only what is reasonably necessary to maintain the Decedent in her accustomed manner of living. Therefore, Decedent did not have a general power of appointment over the assets of the testamentary trust. Because of this, the IRS should not have included the value of the trust corpus in the wife’s gross estate.