Beware of pre-October 22, 1942 general powers of appointment.
- Are assets subject to a general power of appointment (GPOA) includible in the powerholder’s estate? Generally, yes.
- However, for trusts established before October 22, 1942, there’s an exception in which the assets subject to the GPOA aren’t necessarily includible in the estate of the powerholder.
- Practitioners should be aware of this as these trusts wind down.
Co-authored with Emily B. Pickering, senior associate at Morgan, Lewis & Bockius LLP, this article reprint appeared in the June 1, 2019 issue of WealthManagement.com’s Trusts & Estates journal.
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