Estate of Thorndike

Appellant, Edith Jewell Thorndike, as executrix of the will of Charles Thorndike, deceased, has appealed from an order fixing inheritance tax.

The issue on appeal is whether the decedent-donee’s appointment to his daughter, Mary Elaine Ware (a taker in default), of a lesser interest than she would have received in default of appointment is legally effective as an “exercise” of the limited power and therefore taxable to the taker as a transfer from decedent-donee. The court determined that the “exercise” of the limited power of appointment was complete and was taxable pursuant to Revenue and Taxation Code section 13695.

The facts, based partly on stipulation, are not in dispute. Charles Thorndike died on February 5, 1972, a resident of San Francisco, California. His will dated April 28, 1969, was admitted to probate, and his surviving spouse was appointed executrix. Decedent was a beneficiary of two trusts, one created under the will of his grandfather and a trust with identical provisions created under the will of his grandmother. Both grandparents were residents of Massachusetts and died in 1910. Their wills were admitted to probate in Massachusetts. The creating…