6.2 Estate and Gift Tax Provisions

• Library: A Lawyer's Guide to Estate Planning: Fundamentals for the Legal Practitioner (ABA) (2018 Ed.)

6.2 Estate and Gift Tax Provisions

The pertinent provisions of the tax laws classify powers as (1) general powers and (2) nongeneral or limited powers. A general power of appointment is defined as a power exercisable in favor of:

(1) the decedent,
(2) his estate,
(3) his creditors, or
(4) the creditors of his estate; except that the following shall not be deemed a general power:

(A) a power to consume, invade, or appropriate property for the benefit of the decedent which is limited by an ascertainable standard relating to the health, education, support, or maintenance of the decedent;
(B) a power created on or

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