The Perils of Jointly Held General Powers of Appointment

5 Pages Posted: 24 Apr 2012

Date Written: April 23, 2012

Abstract

This article provides an overview of the estate tax consequences of jointly-held general powers of appointment. To avoid triggering estate tax inclusion, a general power should be held with either the creator of the power or a person having a 'substantial' and 'adverse' interest in the exercise of the power. The determination that an interest is substantially adverse to the powerholder’s requires careful reference to the regulations. Jointly-held general powers of appointment are so complicated that they rarely are the most efficient drafting choice.

Keywords: estate tax, power of appointment, general power, substantial, adverse

JEL Classification: K34, K39

Suggested Citation

Crawford, Bridget J., The Perils of Jointly Held General Powers of Appointment (April 23, 2012). Tax Notes, Vol. 135, No. 4, 2012, Available at SSRN: https://ssrn.com/abstract=2044437

Bridget J. Crawford (Contact Author)

Pace University School of Law ( email )

78 North Broadway
White Plains, NY 10603
United States

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