26 U.S.C. § 2514: Powers of appointment

such partial release occurred before November 1, 1951 , or the donee of such power was under a legal disability to release such power on October 21, 1942 , and such partial release occurred not later than six months after the termination of such legal disability. The exercise or release of a general power of appointment created after October 21, 1942 , shall be deemed a transfer of property by the individual possessing such power. 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. 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. 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; 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 subparagraph 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; if (after the application of subparagraphs (A) and (B)) 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 exercisable. If a power of appointment created after October 21, 1942 , is exercised by creating another power of appointment which, under the applicable local law, can be validly exercised so as to postpone the vesting of any estate or interest in the property which was subject to the first power, 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, such exercise of the first power shall, to the extent of the property subject to the second power, be deemed a transfer of property by the individual possessing such power. $5,000, or 5 percent of the aggregate value of the assets out of which, or the proceeds of which, the exercise of the lapsed powers could be satisfied. For purposes of this section a power of appointment created by a will executed on or before October 21, 1942 , shall be considered a power created on or before such date if the person executing such will dies before July 1, 1949 , without having republished such will, by codicil or otherwise, after October 21, 1942 .