Page:United States Statutes at Large Volume 56 Part 1.djvu/980

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 63 Stat. 144. 26U. . c. §1000. 53 Stat. 147. 26U.S.C.§1004 (a) (2), (b). Post, p. 104. SEC. 452. POWERS OF APPOINTMENT. (a) GENERAL RULE.- Section 1000 (relating to imposition of gift tax) is amended by inserting at the end thereof the following new subsection: "(c) POWERS OF APPOINTMENT.- An exercise or release of a power of appointment shall be deemed a transfer of property by the indi- vidual possessing such power. For the purposes of this subsection the term 'power of appointment' means any power to appoint exercis- able by an individual either alone or in conjunction with any person, except- "(1) a power to appoint within a class which does not include any others than the spouse of such individual, spouse of the creator of the power, descendants of such individual or his spouse, descendants (other than such individual) of the creator of the power or his spouse, spouses of such descendants, donees described in section 1004 (a) (2), and donees described in section 1004 (b). As used in this paragraph, the term 'descendant' includes adopted and illegitimate descendants, and the term 'spouse' includes former spouse; and "(2) a power to appoint within a restricted class if such indi- vidual did not receive any beneficial interest, vested or contin- gent, in the property from the creator of the power or thereafter acquire any such interest, and if the power is not exercisable to any extent for the benefit of such individual, his estate, his creditors, or the creditors of his estate. If a power to appoint is exercised by creating another power to appoint, such first power shall not be considered excepted under paragraph (1) or (2) from the definition of power of appointment to the extent of the value of the property subject to such second power to appoint. For the purposes of te preceding sentence the value of the property subject to such second power to appoint shall be its value unreduced by any precedent or subsequent interest not subject to such power to appoint." (b) PoWERs WrrH RESPECT TO WHICH AMENDMENTS NOT APPmI- CABLE. - (1) The amendments made by this section shall not apply with respect to a power to appoint, created on or before the date of enactment of this Act, which is other than a power exercisable in favor of the donee of the power, his estate, his creditors, or the creditors of his estate, unless such power is exercised after the date of enactment of this Act. (2) The amendments made by this section shall not become applicable with respect to a power to appoint created on or before the date of enactment of this Act, which is exercisable in favor of the donee of the power, his estate, his creditors, or the creditors of his estate, if at such date the donee of such power is under a legal disability to release such power, until six months after the termination of such legal disability. For the purposes of the preceding sentence, an individual in the military or naval forces of the United States shall, until the termination of the present war, be considered under a legal disability to release a power to appoint. (c) RELEASE ON OR BEFORE JANUARY 1, 1943. - (1) A release of a power to appoint before January 1, 1943, shall not be deemed a transfer of property by the individual possessing such power. - (2) This subsection shall apply to all calendar years prior to 1943. 952 [56 STAT.

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