Rev. Rul. 63-74

In Revenue Ruling 61-129, C.B. 1961-2, 150, which was based on Technical Information Release No. 320, the Internal Revenue Service stated that it will follow the decision of the United States Court of Appeals for the Eighth Circuit in United States v. Winifred H. Turner, Executrix , 287 Fed.(2d) 821 (1961).

The court held that the decedent's husband had created for her a general power of appointment when he entered into an agreement with an insurance company in 1935, even though he retained the privilege of altering or revoking the agreement.

Since this position was contrary to that stated in Revenue Ruling 278, C.B. 1953-2, 267, the Service further stated that it would revoke Revenue Ruling 278 and give consideration to conforming section 20.2041-1(e) of the Estate Tax Regulations to accord with the decision in the Turner case.

The regulations were accordingly amended in Treasury Decision 6582, C.B. 1962-1, 177.

Therefore, Revenue Ruling 278, C.B. 1953-2, 267, is revoked and Revenue Ruling 61-129, C.B. 1961-2, 150, is hereby superseded.