§ 957. Modification for limited powers of appointment created prior to September first, nineteen hundred thirty. (a) General.–In determining the New York gross estate, there shall be added to the federal gross estate of a deceased resident the value of all property (other than real and tangible personal property situated outside New York state) passing under a limited power of appointment exercised by the decedent (A) by will or (B) by a disposition which is of such nature that if it were a transfer of property owned by him, such property would be includible in his federal gross estate under section two thousand thirty-five, two thousand thirty-six, two thousand thirty-seven or two thousand thirty-eight of the internal revenue code.

Need help with a review of a will?
Have it reviewed by a lawyer, get answers to your questions and move forward with confidence.
Connect with a lawyer now

Terms Used In N.Y. Tax Law 957

  • Decedent: A deceased person.
  • Grantor: The person who establishes a trust and places property into it.
  • Gross estate: The total fair market value of all property and property interests, real and personal, tangible and intangible, of which a decedent had beneficial ownership at the time of death before subtractions for deductions, debts, administrative expenses, and casualty losses suffered during estate administration.
  • Personal property: All property that is not real property.
  • Statute: A law passed by a legislature.

(b) Definition.– For purposes of this section, a limited power of appointment means a power–

(1) with respect to property which is not or was not subject to New York death tax in the estate of the grantor of such power, but would have been so taxable except for a statute providing that the tax on the transfer of such property should be imposed in the estate of the grantee of such power in the event of its exercise; and

(2) the exercise of which has not required the inclusion of the property in the decedent's federal gross estate under section two thousand forty-one of the internal revenue code (relating to general powers of appointment).