Planning for Ascertainable Standards Under Code Section 2041

Englebrecht, Ted D.; Lockwood, M. Jill
May 2001
Journal of Financial Planning;May2001, Vol. 14 Issue 5, p120
Academic Journal
A power of appointment is an excellent estate planning and management technique that can allow a grantor to retain significant control over transfers, yet avoid income and estate tax consequences .To achieve these beneficial results, a technique of ascertainable standards must be used. However, taxpayers have encountered significantly divergent results when deviating from the strict language of the Internal Revenue Code and regulations on ascertainable standards .This article reviews the background on powers of appointment with ascertainable standards, analyzes the differing judicial views on ascertainable standards, and provides a planning framework that will support literal deviations from the Code-sanctioned terms of health, education, support and maintenance.


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