Crawford: The Tax Perils of Jointly Held General Powers of Appointment

Bridget J. Crawford (Pace), The Perils of Jointly Held General Powers of Appointment, 135 Tax Notes 497 (Apr. 23, 2012):

This article provides an overview of the estate tax consequences of jointly-held general powers of appointment. To avoid triggering estate tax inclusion, a general power should be held with either the creator of the power or a person having a 'substantial' and 'adverse' interest in the exercise of the power. The determination that an interest is substantially adverse to the powerholder’s requires careful reference to the regulations. Jointly-held general powers of appointment are so complicated that they rarely are the most efficient drafting choice.

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