STATE, DEPT. OF REVENUE v. MONROE CTY. STATE BANK

No. 1-1078A300.

390 N.E.2d 1104 (1979)

STATE of Indiana, Indiana Department of Revenue, Inheritance Tax Division, Appellant (Petitioner below), v. MONROE County State Bank, Executor of the Estate of Vivian C. Krause, Appellee (Respondent below).

Court of Appeals of Indiana, First District.

June 26, 1979.


Attorney(s) appearing for the Case

Theo. L. Sendak, Atty. Gen., Charles D. Rodgers, Deputy Atty. Gen., Indianapolis, for petitioner-appellant.

Scott E. Fore, Rogers, McDonald & Grodner, William W. Oliver, Bloomington, for respondent-appellee.


ROBERTSON, Judge.

This appeal arises out of a dispute as to whether the exercise in a will of a power of appointment over the corpus of a trust is a taxable transfer for inheritance tax purposes.

The facts are not in dispute. Edward W. Krause died testate. His will contemplated the creation of a trust with the Monroe County State Bank (Bank) as trustee. The trust set up was a typical federal marital deduction trust in which the surviving spouse, Vivian C....

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