The Perils of Jointly Held General Powers of Appointment
Bridget J. Crawford
Pace University School of Law
April 23, 2012
Tax Notes, Vol. 135, No. 4, 2012
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.
Number of Pages in PDF File: 5
Keywords: estate tax, power of appointment, general power, substantial, adverse
JEL Classification: K34, K39
Date posted: April 24, 2012
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