Sec. 12-345b. Taxation of property transferred by exercise or nonexercise of power of appointment: Definitions.
Sec. 12-345b. Taxation of property transferred by exercise or nonexercise of
power of appointment: Definitions. As used in sections 12-345b to 12-345f, inclusive,
the term "general power of appointment" means a power, whether created before or
after May 24, 1972, which is exercisable in favor of the decedent, 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 decedent which is limited by an ascertainable standard
relating to the health, education, support or maintenance of the decedent 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 decedent only in conjunction with another
person shall not be deemed a general power of appointment; and (c) in the case of a power
of appointment created after October 21, 1942, which is exercisable by the decedent only
in conjunction with another person: (1) If the power is not exercisable by the decedent
except in conjunction with the creator of the power, such power shall not be deemed a
general power of appointment; (2) if the power is not exercisable by the decedent 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 decedent, such power
shall not be deemed a general power of appointment. For the purposes of this section a
person who, after the death of the decedent, may be possessed of a power of appointment,
with respect to the property subject to the decedent'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 decedent's power; and (3) if, after the
application of subdivisions (1) and (2), 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 with respect to 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 decedent, in favor of whom such power is exercisable. For purposes of subdivisions (2) and (3), a power shall be deemed to be exercisable
in favor of a person if it is exercisable in favor of such person, his estate, his creditors
or the creditors of his estate.
(1972, P.A. 290, S. 4; P.A. 75-437, S. 1, 5.)
History: 1972 act effective May 24, 1972, and retroactive to January 1, 1972 (all estates of persons dying before January
1, 1972, are subject to succession tax laws applicable before that date and continued in force for that purpose); P.A. 75-437 extended definition to apply to Sec. 12-345f, made former Subdiv. (b) applicable to powers of appointment created
after October 21, 1942, redesignating it as Subdiv. (c), and inserted new Subdiv. (b) re powers of appointment created on
or before October 21, 1942, effective, effective June 26, 1975, and retroactive to January 1, 1972.
Cited. 173 C. 232.
Cited. 10 CA 95.
Cited. 32 CS 231.