Gifts made under a durable power of attorney were held includable in estate

Article Abstract:

The US Fourth Circuit ruled in 'Estate of Casey v. Commissioner' that gifts authorized under a durable power of attorney were voidable, revocable transfers included in the decedent's estate under IRC Section 2038(a)(1). Estate planners commonly use gifts to lessen estate taxes. However, 'Casey' means that the ability to authorize such gifts by an attorney-in-law must be expressly granted by the power of attorney. Planners should thoroughly review the advisability of making such gifts with their clients.

Transfer taxes

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Gifts made under a durable power of attorney are ruled revocable

Article Abstract:

The IRS ruled that gifts made by an attorney-in-fact who was authorized by a durable power of attorney that did not expressly authorize gifts are revocable gifts and therefore subject to gift tax consequences. This ruling, TAM 9231003, is consistent with previous IRS positions concerning durable power of attorneys. The federal gift tax consequences held despite a state court order that retroactively approved the gifts.

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Checks are gifts in year given and deposited under relation-back doctrine

Article Abstract:

The Tax Court has declared a check as a gift in the year it was given even though it did not clear the bank until the next year. The decision, in Estate of Metzger, used the relation-back doctrine to overrule Maryland law which declared a gift incomplete until having cleared the bank.

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