A general power of appointment allows the holder to designate who receives property from a prior decedent through will or deed, including the ability to transfer the property to themselves, their estate, or creditors. In contrast, a special power of appointment only authorizes transferring the property to a restricted class of people, not including the holder themselves. Property subject to a general power of appointment is included in the holder's gross estate for estate tax purposes, while property subject to a special power of appointment is not.

1. 3. Property passing under GPA-
power of appointment is the right to designate by will
or deed the person who will received the property
from prior decedent.
Property with a clause that
She is free to transfer it to anybody.
QUESTION: is the appointment part of his gross estate?
Additions to Gross Estate
Prior Decedent
Donee

2. 3. Property passing under GPA-
power of appointment is the right to designate by will
or deed the person who will received the property.
Additions to Gross Estate
Special Power of Appointment- one which authorizes
the done or holder of the power to appoint only
among a restricted class of persons other than
himself (Morgan). (NOT Part of Gross Estate)
General Power of Appointment- can appoint
beneficiaries INCLUDING himself, estate, creditor or
creditors of his estate. (Part of Gross Estate)

3. 4. Decedent’s Interest-
dividends, profits, proceeds in any
insurance, right of usufruct.
oDividends
oDividends declared by a corporation
before death of stockholder although
paid after death, IF the decedent was
LIVING on the record date.
Additions to Gross Estate