Estate of Olive D. Casey, Deceased; Carlton D. Casey

Summary

The court reversed the Tax Court and held that gifts made by Olive Casey's attorney-in-fact were unauthorized, revocable transfers includible in her gross estate for federal estate tax purposes. Applying Virginia law, the court concluded that a formal, comprehensive durable power of attorney that expressly authorized several transfers for consideration but omitted any express gift-making authority did not confer such authority. The court also rejected reliance on Olive's prior estate-planning gifts and the circumstances existing when the gifts were made.