PURPOSE: This rule shall serve as a guideline as to those matters considered by the director of revenue in determining the taxable interest derived from any disposition of property upon exercising a power of appointment or an unlimited power to encroach upon the corpus of a testamentary trust.

NOTE: This regulation is applicable to decedents dying on or before December 31, 1980.

1. (1) A bequest to the life tenant should be taxed at the full value of the principal of the trust estate, when the trustee has unlimited power to invade the corpus of a testamentary trust for the benefit of the life tenant. When a beneficiary is given the power to encroach upon the principal of a trust for a specific amount annually, upon written request, tax shall be computed at the full value so allocated. When testator bequeaths a life estate and therein granting a power of appointing to the life tenant, the full value of the principal of the testamentary trust is taxable to the life tenant.

AUTHORITY: sections 136.030 and 136.120, RSMo 1969.* Inheritance tax rule 61-230 was last filed on Dec. 31, 1975, effective Jan. 10, 1976.

*Original authority: 136.030, RSMo 1945, amended 1947, 1949, 1965 and 136.120, RSMo 1945.