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account thereof while he was alive during the year. *
* *
S. Rept. 382, supra, 1951 U.S.C.C.A.N. at 1535.
The section 2041(b)(2) exception is an exception to be
applied to the property over which the decedent's general power
of appointment has lapsed and would otherwise be considered
released. It is not an exception to be applied to property over
which the decedent still has a general power of appointment at
the time of death. In the example, the exception was applied to
the amounts for the years for which B's power had lapsed. As in
the facts of this case, B's final year's power had not lapsed at
the time of his death, so no exception was available for that
year. The example in the regulation is not inconsistent with
section 2041(b)(2).
Congressional Intent
The Powers of Appointment Act of 1951 was enacted to remedy
problems with the changes made to then section 811(f) of the
Internal Revenue Code of 1939 by the Revenue Act of 1942. See
Estate of Kurz v. Commissioner, 101 T.C. at 51; S. Rept. 382,
supra. Section 811(f), as amended by the Revenue Act of 1942,
taxed most powers to appoint, whether exercised or not, and
applied to powers created prior to, as well as after, its
enactment. This was in direct contrast to the previous version
of section 811(f), which provided that property subject to powers
of appointment was includable in the gross estate only if (1) the
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