Davis

Facts and Procedural History

Robert Daniels died on March 25, 1982. The second amendment to the Robert and Isabelle Daniels Living Trust of 1982 established a qualified terminable interest property (QTIP) trust which gave Isabelle, as surviving spouse, the income for life and a limited power of appointment over the remainder.

Isabelle died on April 6, 1984. She had received $242,245.63 income from the trust.

On May 9, 1989, the inheritance tax referee filed a report which valued the QTIP trust as follows: Income—$242,246; limited power qualified terminable trust—$603,553; general power to appoint charity—$603,553; “Five by Five” 1 power—$142,368. The remainder interest was valued on the basis of Isabelle’s actual life pursuant to Revenue and Taxation Code section 13955 2 rather than her life expectancy as set forth in the tables pursuant to section 13953.

*489 Respondent objected to the referee’s valuation of the trust pursuant to section 13955. The court sustained the objections and ordered the referee’s report to be amended to value the trust pursuant to section 13953. Petitioner appeals from that order pursuant to Probate Code section 7242, subdivision…