Sec. 12-345c. Taxable transfer made, when.
Sec. 12-345c. Taxable transfer made, when. For purposes of the tax imposed by
this chapter, a decedent shall be deemed to have made a taxable transfer of any property
with respect to which (a) a general power of appointment created on or before October
21, 1942, is exercised by the decedent (1) by will, or (2) by a disposition which is of
such nature that if it were a transfer of property owned by the decedent, such property
would be taxable under the provisions of subsection (c) or (d) of section 12-341b; but
the failure to exercise such a power or the complete release of such a power shall not
be deemed an exercise thereof. If a general power of appointment created on or before
October 21, 1942, has been partially released so that it is no longer a general power of
appointment, the exercise of such power shall not be deemed to be the exercise of a
general power of appointment if such partial release occurred before November 1, 1951,
or if the donee of such power was under a legal disability to release such power and
such partial release occurred not later than six months after the termination of such legal
disability; or (b) the decedent has at the time of his death a general power of appointment,
created after October 21, 1942, irrespective of whether he has exercised such power of
appointment, or with respect to which the decedent has at any time exercised or released
such a general power of appointment by a disposition which is of such nature that if it
were a transfer of property owned by the decedent, such property would be taxable under
the provisions of subsection (c) or (d) of section 12-341b. A disclaimer or renunciation of
a general power of appointment shall not be deemed a release of such power. For purposes of this section the power of appointment shall be considered to exist on the date
of the decedent's death even though the exercise of the power is subject to a precedent
giving of notice or even though the exercise of the power takes effect only on the expiration of a stated period after its exercise, whether or not on or before the date of the
decedent's death notice has been given or the power has been exercised; or (c) the
decedent (1) by will, or (2) by a disposition which is of such nature that if it were a
transfer of property owned by the decedent such property would be taxable under the
provisions of subsection (c) or (d) of section 12-341b, exercises a power of appointment
created after October 21, 1942, by creating another power of appointment which can
be validly exercised so as to postpone the vesting of any estate or interest in such property,
or suspend the absolute ownership or power of alienation of such property, for a period
ascertainable without regard to the date of the creation of the first power.
(1972, P.A. 290, S. 1; P.A. 75-437, S. 2, 5; P.A. 76-435, S. 3, 82.)
History: 1972 act effective May 24, 1971, 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 revised section to distinguish between powers of appointment created on or before October 21, 1942 and those created
after that date, effective June 26, 1975, and retroactive to January 1, 1972; P.A. 76-435 made technical changes.
Cited. 173 C. 232. Cited. 220 C. 77.