An Act relating to the treatment of powers of appointment for estate and gift tax purposes
PL 82-58 (H.R.2084), enacted 06/28/1951

65 STAT.] 
PUBLIC LAW 58—JUNE 28, 1951 
91 
heretofore caused by dredging operations conducted by the Department 
of the Navy: Provided^ 
That no part of the amount appropriated in 
this Act in excess of 10 per centum thereof shall be paid or delivered 
to or received by any agent or attorney on account of services rendered 
m connection with this claim, and the same shall be unlawful, any 
contract to the contrary notwithstanding. 
Any person violating the 
provisions of this Act shall be deemed guilty of a misdemeanor and 
upon conviction thereof shall be fined in any sum not exceeding $1,000. 
Approved June 27, 1951. 
Public Law 57 
CHAPTER 155 
AN ACT 
To extend the time for completing the construction of a toll bridge across the 
Delaware River near Wilmington, Delaware. 
Be it ermcted by the Senate 
and House 
of Representatives 
of 
the 
United 
States 
of America 
in Congress 
assembled^ 
T h a t section 5 of 
the Act entitled "An Act authorizing the State of Delaware, by and 
through its State highway department, to construct, maintain, and 
operate a toll bridge across the Delaware River near Wilmington, 
Delaware", approved July 13, 1946, is hereby amended to read as 
follows: 
" S E C . 5. The authority hereby granted shall cease and be null and 
void unless the actual construction of said bridge and its approaches 
be commenced within three years and completed within six years 
from J u l y 13, 1946." 
Approved J u n e 27, 1951. 
June 27,1951 
[H. R. 4338] 
Toll bridge. 
Delaware River. 
60 Stat. 533. 
Time limitation. 
Public Law 58 
CHAPTER 165 
AN ACT 
Relatint to the treatment of powei's of appointment for estate and gift tax 
purposes. 
June 28,1951 
[H. R. 20841 
United 
States 
of America 
in Congress 
assembled^ T h a t this Act may mrnTAcI, o
f mi!°'"^ 
53 Stat. 122. 
26 U.S.C. §811 (f). 
Be it enacted 
hy the Senate 
and House 
of Representatives 
of 
the 
nited States 
of America 
in Congress 
assembled^ 
T l 
be cited as the "Powers of Appointment Act of 1951". 
SEC. 2. ESTATE TAX—POWERS OF APPOINTMENT. 
(a) Section 811 (f) of the Internal Revenue Code (relating to 
powers of appointment) is hereby amended to read as follows: 
"(f) 
POWERS OF 
A P P O I N T M E N T . — 
"(1) 
PROPERTY WITH RESPECT TO W H I C H DECEDENT EXERCISES A 
GENERAL POWER OF APPOINTMENT CREATED ON OR BEFORE OC'IX)BER 
21, 19 42.—To the extent of any property with respect to which a 
general power of appointment created on or before October 21, 
1942, is exercised by the decedent (1) by will or (2) by a dispo-
sition which is of such nature that if it were a transfer of property 
owned by the decedent, such property would be includible iii the 
decedent's gross estate under subsection (c) or (d) ; but the failure 
to exercise such a power or the complete release of such a power 
shall not be deemed an exercise thereof. 
"If before November 1, 1951, or within the time limited by 
paragraph (2) of section 403 (d) of the Revenue Act of 1942, as 
amended, in cases to which such paragraph is applicable, a general 
26^u*'^s^^c § sii 
power of appointment created on or before October 21, 1942, shall notes. 
have been partially released so that it is no longer a general power 
92 
PUBLIC LAW 58—JUNE 28, 1951 
[65 STAT. 
of appointment, the subsequent exercise of such power shall not 
be deemed to be the exercise of a f^eneral power of appointment. 
"(2) POWERS CREATED AFTER OCTOBER 21, 1942.—To the extent of 
any property with respect to which the decedent has at the time 
of his death a general power of appointment created after October 
21, 1942, or with respect to which the decedent has at any time 
exercised or released such a 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 includible in the 
decedent's gross estate under subsection (c) or (d). A disclaimer 
or renunciation of such a power of appointment shall not be 
deemed a release of such powder. 
"For the purposes of this paragraph (2) the power of appoint-
ment shall be considered to exist on the date of the decedent's 
death even though the exercise of the power is subject to a prece-
dent 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. 
"(3) 
DEFINITION OF GENERAL POWER OF APPOINTMENT.—For the 
purposes of this subsection the term 'general power of appoint-
ment' means a power 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 ascer-
tainable 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 Octo-
ber 21, 1942, which is exercisable by the decedent only in 
conjunction with another person shall not be deemed a gen-
eral power of appointment. 
"(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— 
"(i) if the power is not exercisable by the decedent 
except in conjunction wdth the creator of the power— 
such power shall not be deemed a general power of 
appointment. 
"(ii) 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 dece-
dent—such power shall not be deemed a general power 
of appointment. For the purposes of this clause 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. 
"(iii) if (afterthe application of clauses (i) and (ii)) 
the power is a general power of appointment and is exer-
cisable in favor of such other person—such power shall 
be deemed a general power of appointment only in respect 
66 STAT.] 
PUBLIC LAW 58—JUNE 28, 1951 
93 
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 (includ-
ing the decedent) in favor of whom such power is 
exercisable. 
For the purposes of clauses (ii) and (iii) a power shall be 
deemed to be exercisable in favor of a person if it is exercis-
able in favor of such person, his estate, his creditors, or the 
creditors of his estate. 
"(4) CREATION OF ANOTHER POWER IN CERTAIN CASES.—To the 
extent of any property with respect to which 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 includible in the decedent's gross estate under subsection (c), 
exercises a power of appointment created after October 21, 1942, 
by creating another power of appointment which under the appli-
cable local law can be validly exercised so as to postpone the vest-
ing 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. 
"(5) LAPSE OF POWER.—^The lapse of a power of appointment 
created after October 21, 1942, during the life of the individual 
possessing the power shall be considered a release of such power. 
The rule of the preceding sentence shall apply with respect to 
the lapse of powers during any calendar year only to the extent 
that the property which could have been appointed by exercise of 
such lapsed powers exceeded in value, at the time of such lapse, 
the greater of the following amounts: 
"(A) $5,000, or 
"(B) 5 per centum of the aggregate value, at the time of 
such lapse, of the assets out of which, or the proceeds of which, 
the exercise of the lapsed powers could have been satisfied." 
(b) DATE OF CREATION OF POWER.—For the 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. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
be effective as if made by section 403 of the Revenue Act of 1942 on 
5
6 stat 9
4
2
. 
the date of its enactment (applicable with respect to estates of decedents 812,826', m,m not-^! 
dying after October 21,1942). 
SEC. 3. GIFT TAX—POWERS OF APPOINTMENT. 
(a) Section 1000 (c) of the Internal Revenue Code (relating to 
eestat.952. 
powers of appointment) is hereby amended to read as follows: 
aeu.s.c.jiooocc). 
"(c) POWERS OF APPOINTMENT.— 
"(1) EXERCISE OF GENERAL POWER OF APPOINTMENT CREATED ON 
O
R BEFORE O
C
T
O
B
E
R 21, 1942.—An exercisc of a general power of 
appointment created on or before October 21, 1942, shall be 
deemed a transfer of property by the individual possessing 
such power; but the failure to exercise such a power or the 
complete release of such a power shall not be deemed an 
exercise thereof. 
"If before November 1, 1951, or within the time limited by 
paragraph (2) of section 452 (b) of the Revenue Act of 1942, 
94 
PUBLIC LAW 58—JUNE 28, 1951 
[65 STAT. 
5
6 statg952. 
^^^ 
as amended, in cases to which such paragraph is applicable, 
note. • • • 
a general power of appointment created on or before October 
21, 1942, shall have been partially released so that it is no longer 
a general power of appointment, the subsequent exercise of such 
power shall not be deemed to be the exercise of a general power 
of appointment. 
"(2) POWERS CREATED AFTER OCTOBER 21, 1942.—The exercise 
of a general power of appointment created after October 21, 
1942, or the release after May 31, 1951, of such a power, shall be 
deemed a transfer of property by the individual possessing 
such power. A disclaimer or renunciation of such a power of 
appointment shall not be deemed a release of such power. 
"(3) DEFINITION OF GENERAL POWER OF APPOINTMENT.—For the 
purposes of this subsection the term 'general power of appoint-
ment' means a power which is exercisable in favor of the individ-
ual possessing the power (hereafter in this paragraph referred to 
as the 'possessor'), 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 possessor which is limited by an ascer-
tainable standard relating to the health, education, support, 
or maintenance of the possessor 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 possessor only in conjunc-
tion with another person shall not be deemed a general power 
of appointment. 
"(C) In the case of a power of appointment created after 
October 21, 1942, which is exercisable by the possessor only 
in conjunction with another person— 
"(i) 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; 
"(ii) if the power is not exercisable by the possessor 
except in conjunction with a person having a substan-
tial 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 gen-
eral power of appointment. For the purposes of this 
clause 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; 
"(iii) if (after the application of clauses (i) and (ii)) 
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 exercisaule. 
65 STAT.] 
PUBLIC LAW 59—JUNE 28, 1951 
96 
For the purposes of clauses (ii) and (iii) a power shall be 
deemed to be exercisable in favor of a person if it is exercis-
able in favor of such person, his estate, his creditors, or the 
creditors of his estate. 
" (4)'CREATION OF ANOTHER POWER IN CERTAIN CASES.—If a power 
of appointment created after October 21, 1942, is exercised by 
creating another power of appointment which under the appli-
cable local law can be validly exercised so as to postpone the vest-
ing 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) LAPSE OF POWER.—The lapse of a power of appointment 
created after October 21, 1942, during the life of the individual 
possessing the power shall be considered a release of such power. 
The rule of the preceding sentence shall apply with respect to 
the lapse of powers during any calendar year only to the extent 
that the property which could have been appointed by exercise 
of such lapsed powers exceeds in value the greater of the follow-
ing amounts: 
"(A) $5,000, or 
"(B) 5 per centum of the aggregate value of the assets out 
of which, or the proceeds of w^hich, the exercise of the lapsed 
powers could be satisfied." 
(b) DATE OF CREATION OF POWER.—For the 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. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
be effective as if made by section 452 (a) of the Kevenue Act of 1942 
ocfr^^Hr^^', 
on the date oi its enactment (applicable with respect to gifts made in 
the calendar year 1943 and succeeding calendar years). 
Approved June 28, 1951. 
Public Law 59 
CHAPTER 166 
AN ACT 
June 28,1961 
Authorizing the Secretary of the Interior to lease certain land in the State of 
[H. R. 3033] 
Montana to the city of Poplar and the county of Roosevelt, Montana. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the Secretary of 
Eea'se' ol^e'ert in 
the Interior is authorized and directed to lease for airport purposes to land. 
the city of Poplar and the county of Koosevelt, Montana, for a period 
of twenty-five years and upon such terms and conditions as may be 
agreed upon between the Secretary and such city and county, with the 
approval of the Fort Peck Executive Board, the following-described 
tract of land: The southeast quarter, and the east half of the southwest 
quarter of section 6, township 27 north, range 51 east, Montana prin-
cipal meridian. 
Approved June 28, 1951., 
76100 O - 52 (PT. I) - 9 
26 U. S. C. § 1000.