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as such, pursuant to said Testamentary Trust * * * that
principal is not an asset of the Estate of Mrs. Greve
for federal estate tax purposes. [Reproduced liter-
ally.]
It is respondent’s position that decedent had a general
power of appointment with respect to one-sixth of the principal
of the testamentary trust; under Pennsylvania law decedent
exercised that power through the residuary clause in her will;
and consequently that portion of the testamentary trust is
includible in decedent’s gross estate under section 2041(a)(1).
Section 2041 provides in pertinent part as follows:
SEC. 2041. POWERS OF APPOINTMENT.
(a) In General.--The value of the gross estate
shall include the value of all property--
(1) Powers of appointment created on or
before October 21, 1942.-–To the extent of any
property with respect to which a general power of
appointment created on or before October 21, 1942, is
exercised by the decedent--
(A) by will * * *
* * * * * * *
(b) Definitions.–-For purposes of subsection (a)--
(1) General power of appointment.–-The term
“general power of appointment” means a power which is
exercisable in favor of the decedent, his estate, his
creditors, or the creditors of his estate * * *
The regulations under section 2041 provide the following
definition of the term “power of appointment”:
(b) Definition of “power of appointment”–-(1) In
general. The term “power of appointment” includes all
powers which are in substance and effect powers of
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