## Facts

- Alfred Anderson’s will created a testamentary trust primarily benefiting his wife, Alma Anderson, for life.
- Alma Anderson and her son, John Anderson, served as co-trustees.
- The trust authorized distributions of principal to Alma in amounts “required for her comfort, support, and maintenance.”
- At Alma’s death, the remainder was to pass to Alfred and Alma’s children, Kathleen Best and John Anderson (or their heirs).
- Alma’s estate tax return excluded the trust corpus from her gross estate, asserting Alma’s principal-invasion power was limited by an ascertainable standard.
- The IRS assessed an estate tax deficiency and interest, asserting the trust corpus was includable because Alma held a general power of appointment.
- Kathleen Best, as personal representative, paid the assessment, filed an administrative refund claim, and sued after the claim was denied.
- The case proceeded on summary judgment based on the legal effect of the trust’s distribution standard.

## Issues

1. Whether a trustee-beneficiary power to distribute principal “required for [the beneficiary’s] comfort, support, and maintenance” constitutes a general power of appointment includable in the beneficiary’s gross estate under IRC § 2041.
2. Whether, in context, “comfort” combined with “support” and “maintenance” is limited by an ascertainable standard tied to the beneficiary’s needs and customary standard of living.

## Decision

- The court granted summary judgment for Best.
- The court held Alma’s power to receive principal for “comfort, support, and maintenance” was limited by an ascertainable standard, not a general power of appointment.
- The trust corpus was not includable in Alma’s gross estate for federal estate tax purposes.
- Best was entitled to a refund of the additional estate tax and related interest attributable to the deficiency assessment.

## Legal Principles

- Property subject to a decedent’s general power of appointment is includable in the decedent’s gross estate under IRC § 2041.
- A power to invade principal limited by an ascertainable standard relating to the decedent’s health, education, support, or maintenance is not a general power of appointment.
- When interpreting distribution standards, the operative language must be read in context; a term like “comfort” may be constrained by accompanying terms (“support” and “maintenance”) and limiting words such as “required.”
- A standard that confines distributions to what is reasonably necessary to maintain the beneficiary’s accustomed manner of living can be sufficiently objective to qualify as ascertainable for § 2041 purposes.

## Conclusion

Because the trust permitted principal distributions only as “required” for Alma’s “comfort, support, and maintenance,” the court treated the power as measurable by an ascertainable standard tied to her customary living needs, rejected estate inclusion under IRC § 2041, and ordered a refund of the deficiency taxes and interest.


Best v. United States, 902 F. Supp. 1023 (D. Neb. 1995)