§2041 — Powers of appointment

But we disagree with respondent's assertion that "there is no ambiguity in the specific language at issue".

Gerson’s power of appointment arose 1 By contrast, if a decedent holds a nongeneral power of appointment (i.e., a limited or special power of appointment), the appointive property is not taxable under sec. 2041.

t represents that he will allow an additional credit for (continued...) - 4 - (1) Whether the values of the assets of the Sidney Gore Marital Fund (Marital Fund assets) are includable in Sylvia Gore’s (decedent’s) gross estate under section 2033 or section 2041; (2) alternatively, if decedent completed a transfer of Marital Fund assets to the Gore Family Limited Partnership (GFLP) before her death, whether the values of those assets are includable in decedent’s gross estate under sections 2041,

t represents that he will allow an additional credit for (continued...) - 4 - (1) Whether the values of the assets of the Sidney Gore Marital Fund (Marital Fund assets) are includable in Sylvia Gore’s (decedent’s) gross estate under section 2033 or section 2041; (2) alternatively, if decedent completed a transfer of Marital Fund assets to the Gore Family Limited Partnership (GFLP) before her death, whether the values of those assets are includable in decedent’s gross estate under sections 2041,

the decedent’s death.” Section 2035(c) does not provide for the netting of “consideration” received for the payment of gift taxes. Second, section 2043(a), by its terms, applies to “transfers * * * described in sections 2035 to 2038, inclusive, and section 2041”. Section 2035(c) (unlike section 2035(a), for example), does not describe a “transfer” but merely requires that the gross estate be grossed up by the amount of gift taxes paid on gifts made within 3 years of the decedent’s death. The est

ct to which such individual is the transferor.” As a general rule, if a decedent holds a general power of appointment over property at death, the value of such property is included in the decedent’s gross estate for Federal estate tax purposes under section 2041. With exceptions not pertinent to our discussion, a 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”. Sec. 2041(b)(1). GST tax generally

Posner (decedent) possessed a general power of appointment over the marital trust property in question under section 2041; and (2) whether the duty of consistency requires the estate to treat decedent as possessing a general power of appointment under section 2041.1 Finally, if we determine that the estate is entitled to a refund of an estate tax overpayment, we must decide whether this Court has jurisdiction at this juncture to award interest on the over

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 Octob

Petitioner contends that Section Two of the amended trust created a general power of appointment over the income from the testamentary trust, under section 2041 and section 20.2041- 1(c)(1) and (2), Estate Tax Regs., and that a general power of appointment under section 2041 is sufficient to qualify the surviving spouse’s interest income in the testamentary trust for section 2056(b)(5) treatment, relying on Sec.

Section 2041 provides generally that a decedent's gross estate shall include the value of all property over which the decedent has a general power of appointment at the time of his or her death. See sec. 2041(a)(2). As mentioned above, at the time of her death, the decedent possessed a general power of appointment over a 25.235-percent limited part

Moreover, section 2041 provides generally that a decedent's gross estate shall include the value of all property subject to a "general" power of appointment.

's gross estate under sections 2034 to 2041, inclusive. The parties agree that decedent held a general power of appointment over the Marital Trust property and, consequently, the Marital Trust property was includable in decedent's gross estate under section 2041. Section 6324(a)(2) provides for the substantive liability of a trustee and similarly situated persons and does not depend on the anomalies of State law. See Schuster v. Commissioner, 312 F.2d 311, 315 (9th Cir. 1962) (interpreting secti

resident of Florida, died on September 5, 1987. Because of her general power of appointment over the Marital Trust property, the entire value of the trust property was included in her gross estate for Federal estate tax purposes in accordance with section 2041. Pursuant to her will, Mrs. Peterson exercised her general power of appointment only to the extent of directing that the Federal estate tax attributable to the inclusion of the Marital Trust property in her gross estate be paid from the M

Section 2043(a) says (with the key word italicized) Ifany one ofthe transfers * * * described in sections 2035 to 2038, inclusive, and section 2041 is made, created, exercised, or relinquished for a consideration in money or money's worth, but is - 42 - [*42] not a bona fide sale for an adequate and full consideration in money or money's worth, there shall be included in the gross estate only the excess ofthe fair market value at the time ofdeath ofthe property otherwise to be in

Section 2043(a) says (with the key word italicized) Ifany one ofthe transfers * * * described in sections 2035 to 2038, inclusive, and section 2041 is made, created, exercised, or relinquished for a consideration in money or money's worth, but is - 42 - [*42] not a bona fide sale for an adequate and full consideration in money or money's worth, there shall be included in the gross estate only the excess ofthe fair market value at the time ofdeath ofthe property otherwise to be in

ck was included in the value of the gross estate. Id. at 319. .The value of the stock the decedent owned outright was included under sec. 2033. Id. And the value of the stock that was subject to the decedent's power of appointment was included under sec. 2041. Id. Because the decedent in Estate of Fontana controlled the disposition of the.stock that was subject to the general power of appointment (unlike the property in the qualified terminable interest property trust in Estate of Mellinger), we

Among these specific sections are section 2036, which includes transfers where the decedent retained the possession of, the enjoyment of, or the right to designate persons who shall possess or enjoy transferred property or income therefrom; section 2038, which includes revocable transfers; and section 2041, which includes property over which the decedent held a general power of appointment.

Among these specific sections are section 2036, which includes transfers where the decedent retained the possession of, the enjoyment of, or the right to designate persons who shall possess or enjoy transferred property or income therefrom; section 2038, which includes revocable transfers; and section 2041, which includes property over which the decedent held a general power of appointment.

interests, rights, or powers enumerated and described in sections 2035 to 2038, inclusive, and section 2041 is made, created, exercised, or relinquished for a consideration in money or money’s worth, but is not a bona fide sale for an adequate and full consideration in money or money’s worth, there shall be included in the gross estate only the excess of the fair market value at the time of death of the property otherwise to be included on account of such transaction, over the value of the consi

1097, the predecessor to section 2041, states: A person having a general power of appointment is, with respect to disposition of the property at his death, in a position not unlike that of its owner.

ction with respect to property passing under or outside of the provisions of this Will or any codicil to it which is includible in my estate for the purpose of determining such tax, including, but not limited to, any tax on property includible under section 2041 (relating to life insurance proceeds), section 2042 - 5 - (relating to powers of appointment), or section 2044 (relating to qualified terminable interest property) of the Internal Revenue Code, or any comparable provision of state law, b

In General.–-If any one of the transfers, trusts, interests, rights, or powers enumerated and described in sections 2035 to 2038, inclusive, and section 2041 is made, created, exercised, or relinquished for a consideration in money or money’s worth, but is not a bona fide sale for an adequate and full consideration in money or money’s worth, there shall be included in the gross estate only the excess of the fair market value at the time of death of the property otherwise to be included on a

ations If the standard governing the exercise of a life- time or a testamentary power of appointment does not clearly indicate that a broader or more restrictive power of appointment is intended, the holder of the power of appointment may exercise it in his or her favor only for his or her health, education, support, or maintenance as described in section 2041 or 2514 of the Internal Revenue Code and the applicable regula- tions adopted under the section.

Section 2043(a) provides in pertinent part: (a) In General.--If any one of the transfers * * * described in sections 2035 to 2038, inclusive, and section 2041 is made * * * for a consideration in money or money's worth, but is not a bona fide sale for an adequate and full consideration in money or money's worth, there shall be included in the gross estate only the excess of the fair market value at the time of death of the property otherwise to be included on account of such transaction, ove

resident of Florida, died on September 5, 1987. Because of her general power of appointment over the marital trust property, the entire value of the trust property was included in her gross estate for Federal estate tax purposes in accordance with section 2041. Pursuant to her will, Mrs. Peterson exercised her general power of appointment only to the extent of directing that the Federal estate tax attributable to the inclusion of the marital trust property in her gross estate be paid from the m