The Perils of Jointly Held General Powers of Appointment
5 Pages Posted: 24 Apr 2012
Date Written: April 23, 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.
Keywords: estate tax, power of appointment, general power, substantial, adverse
JEL Classification: K34, K39
Suggested Citation: Suggested Citation