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of appointment created after October 21, 1942 * * *
Section 2041(b)(1)(C)(ii) excepts, inter alia, the following
power of appointment from the definition of the term “general
power of appointment” in section 2041(b)(1):
(C) In the case of a power of appointment
created after October 21, 1942, which is
exercisable by the decedent only in conjunction
with another person--
* * * * * * *
(ii) If the power is not exercisable by
the decedent except in conjunction with a person
having a substantial interest in the property,
subject to the power, which is adverse to exercise
of the power in favor of the decedent–-such power
shall not be deemed a general power of
appointment. For the purposes of this clause a
person who, after the death of the decedent, may
be possessed of a power of appointment (with
respect to the property subject to the decedent’s
power) which he may exercise in his own favor
shall be deemed as having an interest in the
property and such interest shall be deemed adverse
to such exercise of the decedent’s power.
The regulations under section 2041(b)(1)(C)(ii) elaborate as
follows on the power of appointment described in that section:
(c) Joint powers created after October 21, 1942.
The treatment of a power of appointment created after
October 21, 1942, which is exercisable only in
conjunction with another person is governed by section
2041(b)(1)(C), which provides as follows:
* * * * * * *
(2) Such power is not considered a general power
of appointment if it is not exercisable by the decedent
except with the consent or joinder of a person having a
substantial interest in the property subject to the
power which is adverse to the exercise of the power in
favor of the decedent, his estate, his creditors, or
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