Estate of Vissering v. Commissioner case brief

Estate of Vissering v. Commissioner case brief summary
990 F.2d 578 (1993)

CASE SYNOPSIS

Petitioner estate appealed a decision of the United States Tax Court, which held that at his death decedent held a general power of appointment, under 26 U.S.C.S. § 2041, and which required the assets of a trust be included in his gross estate for federal estate tax purposes.

CASE FACTS
Decedent was co-trustee of a trust that allowed invasion to the extent "required for the continued comfort, support, maintenance, or education " of the decedent. Petitioner estate challenged a tax court decision which held that at his death decedent held a general power of appointment, under 26 U.S.C.S. § 2041, and which required the assets of the trust be included in his gross estate for federal estate tax purposes.

DISCUSSION

• The appellate court reversed holding that under Treas. Reg. § 20.2041-1(c)(2), the terms "required for the continued comfort" limited decedent's ability to invade the trust, subject to an ascertainable standard. 
• Therefore, the court determined that decedent did not have a general power of appointment and the assets of the trust were not includable in decedent's gross estate for federal estate tax purposes.

CONCLUSION
The appellate court reversed holding that under treasury regulations the terms "required for the continued comfort" found in the trust document limited decedent's ability to invade the trust, subject to an ascertainable standard. Therefore, the court determined that decedent did not have a general power of appointment.

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