The children are given general powers of appointment
over their pro rata trust shares, but only upon the death of their mother.
Permissible Appointments Under General Powers of Appointment
Similar to general powers of appointment, (215) under subsection (b)(2) of my recommended statute, the donee of a special power may exercise the power in further trust, (216) but unlike a general power, the donor may restrict exercise to outright appointments.
So as not to confuse the agent in this regard, it might be a good idea to specifically state in the durable power of attorney that the power to exercise testamentary special and general powers of appointment
is one of those powers that the agent is expressly prohibited from exercising.
in defining presently exercisable general powers of appointment
held by the decedent.
While general powers of appointment
may present valuation problems, the regulations are clear on the treatment of special powers of appointment with respect to the TPT credit.
2041(a)(1) and 2514(a), the lapse or release of pre-1942 general powers of appointment
are not subject to estate or gift tax).
The "tolling" of the disclaimer period when general powers of appointment
are involved provides great flexibility in tailoring dispositive transfers involving long-term trusts.
Further, the IRS rested its conclusion on a New York Surrogate Court ruling in Spear(37) that general powers of appointment
, under New York law, were deemed to exist in each primary beneficiary under roughly comparable facts.