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The feat Last Legion Officer reads as follows:
Benefit: When you use a power that would enable an ally to spend a healing surge, that ally can also choose to shift 1 square as a free action or gain a +2 bonus to AC and Reflex until the start of his or her next turn.
If a warlord uses Inspiring Word with this feat, can the target choose not to spend a healing surge but still gain the effect from the feat?
Yes, you can. Inspiring Word grants the option to spend a healing surge, and Last Legion Officer triggers off of granting such options, not on the healing surges actually being spent.
It sounds like a waste of an action (shift 1 or +2 AC/Reflex isn't much of an effect on its own), but I can imagine a few specialized situations where it might be useful. Perhaps setting up a flank or stepping on a trigger plate would be more useful, rarely, than whatever else you might accomplish on your turn.
