Page:United States Statutes at Large Volume 56 Part 1.djvu/970

 PUBLIC LAWS--C. 619-OCT. 21 . 1942 53 Stat. 122 . 26U.S. C. §811 (e). Post, p. 944. 53 Stat. 122. 26 U.S. C. 811 (f). decedent and surviving spouse under the law of any State, Ter- ritory, or possession of the United States, or any foreign coun- try, shall be considered to have been made by the decedent, except such part thereof as may be shown to have been received as compensation for personal services actually rendered by the surviving spouse or derived originally from such compensation or from separate property of the surviving spouse." (b) GENERAL RuLE.-Section 811 (e) (relating to joint interests) is amended as follows: (1) By striking out "(e) JOINT INTERESTS.-" and inserting in lieu thereof "(e) JOINT AND COMMUNNrr INTERESTS. - "(1) JOINT INTERESTS.-". (2) By inserting at the end thereof the following new para- graph: "(2) COMMUNITY INTERESTS.- To the extent of the interest therein held as community property by the decedent and surviv- ing spouse under the law of any State, Territory, or possession of the United States, or any foreign country, except such part thereof as may be shown to have been received as compensation for personal services actually rendered by the surviving spouse or derived originally from such compensation or from separate property of the surviving spouse. In no case shall such interest included in the gross estate of the decedent be less than the value. of such part of the community property as was subject to the decedent's power of testamentary disposition." (c) CRoss REFERENCE.-For treatment of life insurance acquired with community property, see amendment to section 811 (g) made by section 404 of this Act. SEC. 403. POWERS OF APPOINTMENT. (a) GENERAL RuLE. -Section 811 (f) (relating to powers of appointment) is amended to read as follows: '(f) POWERS OF APPOINTMENT. - "(1) IN GENERAL.-To the extent of any property (A) with respect to which the decedent has at the time of his death a power of appointment, or (B) with respect to which he has at any time exercised or relsed ed a power of appointment in con- templation of death, or (C) with respect to which he has at any time exercised or released a power of appointment by a disposi- tion intended to take effect in possession or enjoyment at or after his death, or by a disposition under which he has retained for his life or any period not ascertainable without reference to his death or for any period which does not in fact end before his death (i) the possession or enjoyment of or the right to the income from, the property, or (ii) the right, either alone or in conjunction with any person, to designate the persons who shall possess or enjoy the property or the income therefrom; except m case of a bona fide sale for an adequate and full consideration in money or money's worth. "(2) DEFINITION OF POWER OF APPOINTMENT. -For the purposes of this subsection the term 'power of appointment' means any power to appoint exercisable by the decedent either alone or in conjunction with any person, except "(A) a power to appoint within a class which does not include any others than the spouse of the decedent, spouse of the creator of the power, descendants of the decedent or his spouse; descendants (other than the decedent) of the creator of the power or his spouse, spouses of such descend- [56 STAT.

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