Gifts made under power of attorney were excludable from estate

Article Abstract:

The Fourth Circuit ruled in Estate of Ridenour that gifts made under the power of attorney could be excluded from the estate for estate tax purposes since the power of attorney implied power of gift-giving, and the gift-giving was consistent with the decedent's past behavior. Most power of attorney documents should expressly state the power to give gifts, however. The fact that this man was the decedent's son and had received similar gifts in the past swayed the court in this case.

Power of attorney, Transfer (Law)

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Donor's retained control caused incomplete gift, rules Tax Court

Article Abstract:

The US Tax Court ruled in 'Estate of Vak' that taxpayers cannot transfer property to avoid paying gift tax while simultaneously retaining control over the property. The case involved Joseph A. Vak's attempt to avoid tax liability for his company, Joe Vak Farm Inc, by transferring stock to various family members. The court determined that the stock was an incomplete gift and that Vak was therefore liable for the gift tax.

Gift tax, Stock transfer

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