Page:United States Statutes at Large Volume 65.djvu/128

 94 56 statg952. note. • • •

PUBLIC LAW 58—JUNE 28, 1951 ^^^

[65 STAT.

as amended, in cases to which such paragraph is applicable, a general power of appointment created on or before October 21, 1942, shall have been partially released so that it is no longer a general power of appointment, the subsequent exercise of such power shall not be deemed to be the exercise of a general power of appointment. " (2) POWERS CREATED AFTER OCTOBER 21, 1942.—The exercise

of a general power of appointment created after October 21, 1942, or the release after May 31, 1951, of such a power, shall be deemed a transfer of property by the individual possessing such power. A disclaimer or renunciation of such a power of appointment shall not be deemed a release of such power. " (3) DEFINITION OF GENERAL POWER OF APPOINTMENT.—For the

purposes of this subsection the term 'general power of appointment' means a power which is exercisable in favor of the individual possessing the power (hereafter in this paragraph referred to as the 'possessor'), his estate, his creditors, or the creditors of his estate; except that— " (A) A power to consume, invade, or appropriate property for the benefit of the possessor which is limited by an ascertainable standard relating to the health, education, support, or maintenance of the possessor shall not be deemed a general power of appointment. " (B) A power of appointment created on or before October 21, 1942, which is exercisable by the possessor only in conjunction with another person shall not be deemed a general power of appointment. "(C) I n the case of a power of appointment created after October 21, 1942, which is exercisable by the possessor only in conjunction with another person— "(i) if the power is not exercisable by the possessor except in conjunction with the creator of the power— such power shall not be deemed a general power of appointment; "(ii) if the power is not exercisable by the possessor except in conjunction with a person having a substantial interest, in the property subject to the power, which is adverse to exercise of the power in favor of the possessor—such power shall not be deemed a general power of appointment. For the purposes of this clause a person who, after the death of the possessor, may be possessed of a power of appointment (with respect to the property subject to the possessor's power) which he may exercise in his own favor shall be deemed as having an interest in the property and such interest shall be deemed adverse to such exercise of the possessor's power; "(iii) if (after the application of clauses (i) and ( i i)) the power is a general power of appointment and is exercisable in favor of such other person—such power shall be deemed a general power of appointment only in respect of a fractional part of the property subject to such power, such part to be determined by dividing the value of such property by the number of such persons (including the possessor) in favor of whom such power is exercisaule.

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