Best v. United States

Facts

Plaintiff, pursuant to an IRS tax deficiency assessment, paid federal estate taxes (and interest) on the corpus of a trust that had been established for Decedent’s benefit. Plaintiff argues that the trust corpus should not be included in the estate of Decedent and therefore challenged the IRS deficiency assessment. The trust had been established by Decedent’s husband to provide for the reasonable comfort, support, and maintenance. Upon Decedent’s death, the corpus of the trust was distributable to Decedent’s children, Kathleen Best and John Anderson, or to their heirs. Plaintiff contends that the testamentary trust under the will of Decedent’s husband conferred an invasionary power limited by an ascertainable standard so that the corpus of the testamentary trust estate is excludable from the gross estate of Decedent. Respondent argues that a general power of appointment over the trust corpus was conveyed by the will trust and that therefore the value of the trust was includabl e in Decedent’s gross estate.