- 16 - 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 ofPage: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011