Issues With Jointly Held Powers of Appointment

Bridget J. Crawford reviews the estate tax issues with jointly held general powers of appointment. For example, to avid triggering estate tax inclusion, a general power should be held with either the creator of the power or a person having a substantial adverse interest in the power's exercise. But, determining that an interest is substantially adverse to the power holder's requires complex compliance with IRS Regulations. Thus, jointly held general powers of appointment are rarely the best choice when drafting estate planning documents.