De Oliveira v. United States

767 F.2d 1344 (1985)

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Nature of the Case

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Facts

The trust at issue was created by the decedent's husband. The corpus consisted of half of the husband's community property. Decedent was named in the trust as both the lifetime beneficiary and the trustee. Under the terms of the trust, the trustee was given a number of specific powers. No limitations were placed on the use of the trust assets. While she was trustee of the trust, decedent executed an instrument in which she agreed to confer with other family members before entering into any transaction with regard to the family property, and to abide by a majority vote of the family with respect to any transaction. Upon decedent's death, the IRS determined that the trust gave decedent a general power of appointment over the trust, and that the assets were includable in her gross estate.