Taxation of Estates and Gifts
General Power of Appointment
A general power of appointment is one that has one of the following as permissive appointees:
- The decedent
- The decedent's estate
- The decedent's creditors
- The decedent's estate's creditors
Except the following are not general powers of appointment:
- A power to consume, invade, or appropriate property for the benefit of the decedent that is limited by an ascertainable standard relating to the health, education, support, or maintenance of the decedent. 26 U.S.C. § 2041(b)(1)(A).
- A power exercisable by the decedent only in conjunction with the creator of the power. 26 U.S.C. § 2041(b)(1)(C)(i).
- A power exercisable by the decedent only in conjunction with a person having a substantial interest in the property subject to the power, which is adverse to the exercise of the power in favor of the decedent. 26 U.S.C. § 2041(b)(1)(C)(ii).