Robert H. Bachler, of the Estate of E. Murielle Wunderlich v. United States

Robert H. Bachler (“the Executor”), executor of the estate of E. Murielle Wun-derlich, appeals the judgment of the district court for the Northern District of California denying his suit for refund of estate tax erroneously paid pursuant to Internal Revenue Code § 2612(c). We hold that the tax was paid upon a transfer of property by a general power of appointment under a trust that became irrevocable in 1976, and was therefore a generation-skipping transfer exempted by § 1433(b) of the Tax Reform Act of 1986, Pub.L. No. 99-514, 100 Stat.2085, from the generation-skipping transfer tax (“GST”) imposed by 26 U.S.C. §§ 2601-2663 . The judgment of the district court is accordingly reversed, and the case remanded for entry of judgment in favor of the Executor.

FACTS

Martin C. Wunderlich died on May 20, 1976. Article Eight, sections I and II of his will established a trust in favor of his wife E. Murielle Wunderlich, providing her with the income for life plus such amounts of corpus as the trustees in their discretion should choose to give her, and the remainder on her death to be distributed “as my wife may appoint by a will or Codicil thereto specifically referring to and…