Cory

*594 Opinion

Kenneth Cory, State Controller (Cory), appeals from an order of the superior court fixing inheritance tax at $177.83 in the estate of Madolyn J. Stober, deceased (Madolyn). The trial court sustained objections to the report of the inheritance tax referee which had fixed a tax liability of $79,937.58 by virtue of a power of appointment created by the testamentary trust of Carl A. Jarecki (testator).

Facts

By will dated November 6, 1935, testator Jarecki established the testamentary trust, naming his wife Madolyn Jarecki (Stober) as one of the cotrustees. By the terms of the trust, Madolyn for the duration of her life was the sole income beneficiary. Upon Madolyn’s death, the trust income was to be distributed in equal shares to their two daughters, Louise Jarecki Dieter and Carla Jarecki Dale (petitioners). Testator Jarecki died April 3, 1941, a Pennsylvania resident; Madolyn died April 21, 1974, a resident of San Diego, California.

Paragraph second, subdivision 3 of the will instructed: “The Trustees are further authorized to pay from the corpus of this Trust such sums as may, in the discretion of the Trustees, be required to defray the expenses resulting from the…