derived originally from such compensation originally from such compensation the surviving spouse or Sec. 811, I. R. C., supra, amended by Sec. 402 (b), R. A. of 1942, to read as above. Sec. 401 of said Act makes amendment applicable to estates of decedents dying after Oct. 21, 1942. For Sec. 811, I. R. C., before amendment, see 1942 column.. Sec. 811. (f) Powers of appointment. the decedent's power of testamen- Sec. 811, I. R. C., supra, Sec. 811. (f) Powers of appointment. Estates of Decedents Sec. 811. (f) Property passing under general power of appoint ment. To the extent of any prop Sec. 811. (f) (1) In general.— Sec. 811. (f) (1) In general.—erty passing under a general power To the extent of any property (A) To the extent of any property (A) of appointment exercised by the with respect to which the decedent with respect to which the decedent decedent (1) by will, or (2) by has at the time of his death a power has at the time of his death a power deed executed in contemplation of of appointment, or (B) with re- of appointment, or (B) with re- or intended to take effect in posspect to which he has at any time spect to which he has at any time session or enjoyment at or after his exercised or released a power of exercised or released a power of death, or (3) by deed under whicł appointment in contemplation of appointment in contemplation of he has retained for his life or any death, or (C) with respect to which death, or (C) with respect to which period not ascertainable without he has at any time exercised or re- he has at any time exercised or re-reference to his death or for any leased a power of appointment by leased a power of appointment by period which does not in fact end a disposition intended to take effect a disposition intended to take effect in possession or enjoyment at or in possession or enjoyment at or after his death, or by a disposition after his death, or by a disposition under which he has retained for his under which he has retained for his life or any period not ascertainable life or any period not ascertainable without reference to his death or without reference to his death or for any period which does not in for any period which does not in fact end before his death (i) the fact end before his death (i) the possession or enjoyment of, or the possession or enjoyment of, or the right to the income from, the prop-right to the income from, the property, or (ii) the right, either alone erty, or (ii) the right, either alone or in conjunction with any person, or in conjunction with any person, to designate the persons who shall to designate the persons who shall possess or enjoy the property or possess or enjoy the property or the income therefrom; except in the income therefrom; except in case of a bona fide sale for an adequate and full consideration in money or money's worth. Sec. 811. (f) (2) Definition of power of appointment.-For the purposes of this subsection the term "power of appointment" means any power to appoint exercisable by the decedent either alone or in conjunction with any person, except case of a bona fide sale for an ade- Sec. 811. (f) (2) Definition of power of appointment. For the purposes of this subsection the term "power of appointment" means any power to appoint exercisable by the decedent either alone or in conjunction with any person, except (A) a power to appoint within a (A) a power to appoint within a class which does not include any class which does not include any others than the spouse of the de- others than the spouse of the decedent, spouse of the creator of the cedent, spouse of the creator of the power, descendants of the decedent power, descendants of the decedent or his spouse, descendants (other or his spouse, descendants (other before his death (A) the possession or enjoyment of, or the right to the income from, the property, or (B) the right, either alone or in conjunction with any person, to desig nate the persons who shall possess or enjoy the property or the income therefrom; except in case of a bona fide sale for an adequate and full consideration in money or money's worth; and Estates of Decedents Estates of Decedents Estates of Decedents Dying on or before Feb. 10, 1939 Sec. 811. (f) Property passing Sec. 811. (f) Property passing under general power of appoint- under general power of appointment. To the extent of any prop-ment.-To the extent of any property passing under a general power erty passing under a general power of appointment exercised by the of appointment exercised by the decedent (1) by will, or (2) by decedent (1) by will, or (2) by deed executed in contemplation of deed executed in contemplation of or intended to take effect in possession or enjoyment at or after his death, or (3) by deed under which he has retained for his life or any period not ascertainable without reference to his death or for any period which does not in fact end before his death (A) the possession or enjoyment of, or the right to the income from, the property, or (B) the right, either alone or in conjunction with any person, to designate the persons who shall possess or enjoy the property or the income therefrom; except in case of a bona fide sale for an adequate and full consideration in money or money's worth; and or intended to take effect in pos- Sec. 302 (f). See p. 490, Eighth Edition. Estates of Decedents than the decedent) of the creator of the power or his spouse, spouses of such descendants, donees described in section 812 (d), and donees described in section 861 (a) (3). As used in this subparagraph, the term "descendant" includes adopted and illegitimate descendants, and the term "spouse" includes former spouse; and (B) a power to appoint within a restricted class if the decedent did not receive any beneficial interest, vested or contingent, in the property from the creator of the power or thereafter acquire any such interest, and if the power is not exercisable to any extent for the benefit of the decedent, his estate, his creditors, or the creditors of his estate. If a power to appoint is exercised by creating another power to appoint, such first power shall not be considered excepted under subparagraph (A) or (B) from the definition of power of appointment to the extent of the value of the property subject to such second power to appoint. For the purposes of the preceding sentence the value of the property subject to such second power to appoint shall be its value unreduced by any precedent or subsequent interest not subject to such power to appoint. Estates of Decedents than the decedent) of the creator of (B) a power to appoint within a If a power to appoint is exercised Sec. 811. (f) (3) Date of exist- Sec. 811. (f) (3) Date of existence of power.-For the purposes ence of power.-For the purposes of this subsection the power of ap- of this subsection the power of appointment shall be considered to ex-pointment shall be considered to exist on the date of the decedent's ist on the date of the decedent's death even though the exercise of death even though the exercise of the power is subject to a precedent the power is subject to a precedent 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. Sec. 811 (f), I. R. C., supra, amended to read as above by Sec. 403 (a), R. A. of 1942. See Sec. 403 (d), R. A. of 1942, in fn. 29, below, relative to powers with respect to which amendment not applicable. giving of notice or even though the Sec. 811 (f), I. R. C., supra, 29 Sec. 403 (d), R. A. of 1942 (referring to amendments made by Sec. 403 (a), (b) and (c), R. A. of 1942, to Secs. 811 (f), 812 (d), 861 (a) (3) and 826 (d), I. R. C.) provides as follows: Sec. 403. (d) Powers with respect to which amendments not applicable.— (1) The amendments made by this section shall not apply with respect to a power to appoint, created on or Estates of Decedents before the date of the enactment of this Act, which is other than a power exercisable in favor of the decedent, his estate, his creditors, or the creditors of his estate, unless such power is exercised after the date of the enactment of this Act. (2) The amendments made by this section shall not become applicable with respect to a power to appoint created on or before the date of enactment of this Act, which is exercisable in favor of the decedent, his estate, Estates of Decedents Dying during 1940 Estates of Decedents Dying after Feb. 10, 1939 Estates of Decedents Dying on or before Feb. 10, 1939 his creditors, or the creditors of his estate, if at such date the donee of such power is under a legal disability to release such power, until six months after the termination of such legal disability. For the purposes of the preceding sentence, an individual in the military or naval forces of the United States shall, until the termination of the present war, be considered under a legal disability to release a power to appoint. (3) The amendments made by this section shall not apply with respect to any power to appoint created on or before the date of the enactment of this Act if it is released before January 1, 1943, or within the time limited by paragraph (2) in cases to which such paragraph is applicable; or if the decedent dies before January 1, 1943, or within the time limited by paragraph (2) in cases to which such paragraph is applicable, and such power is not exercised. Sec. 811. (g) (2) Receivable by Sec. 811. (g) (2) Receivable by other beneficiaries.-To the extent | other beneficiaries.-To the extent of the amount receivable by all of the amount receivable by all other other beneficiaries as insurance beneficiaries as insurance under under policies upon the life of the policies upon the life of the decedecedent (A) purchased with pre-dent (A) purchased with premiums, miums, or other consideration, paid or other consideration, paid directly directly or indirectly by the dece- or indirectly by the decedent, in dent, in proportion that the amount proportion that the amount so paid so paid by the decedent bears to the by the decedent bears to the total total premiums paid for the insur- premiums paid for the insurance, or ance, or (B) with respect to which (B) with respect to which the dethe decedent possessed at his death cedent possessed at his death any any of the incidents of ownership, of the incidents of ownership, exexercisable either alone or in con- ercisable either alone or in conjuncjunction with any other person. For tion with any other person. For the the purposes of clause (A) of this purposes of clause (A) of this paraparagraph, if the decedent trans- graph, if the decedent transferred, ferred, by assignment or otherwise, by assignment or otherwise, a policy a policy of insurance, the amount of insurance, the amount paid dipaid directly or indirectly by the rectly or indirectly by the decedent decedent shall be reduced by an shall be reduced by an amount which amount which bears the same ratio bears the same ratio to the amount to the amount paid directly or in- paid directly or indirectly by the directly by the decedent as the con- decedent as the consideration in sideration in money or money's money or money's worth received worth received by the decedent for by the decedent for the transfer the transfer bears to the value of bears to the value of the policy at the policy at the time of the trans- the time of the transfer. For the fer. For the purposes of clause purposes of clause (B) of this (B) of this paragraph, the term paragraph, the term "incident of "incident of ownership" does not ownership" does not include a reversionary interest. versionary interest. include a re Estates of Decedents Sec. 811. (g) Proceeds of life insurance. To the extent of the amount receivable by the executor as insurance under policies taken out by the decedent upon his own life; and to the extent of the excess over $40,000 of the amount receivable by all other beneficiaries as insurance under policies taken out by the decedent upon his own life. (Amendment of Sec. 403 (d), R. A. of 1942, by H. J. R. 365 of Dec. 17, 1942) Sec. 403 (d), R. A. of 1942, supra, was amended by H. J. R. 365 of Dec. 17, 1942, by striking out Jan. 1, 1943, wherever occurring therein and inserting in lieu thereof July 1, 1943. (Amendment of Sec. 403 (d), R. A. of 1942, by Sec. 10, Current Tax Payment Sec. 403 (d), R. A. of 1942, was amended by Sec. 10, Current Tax Payment Act of 1943, approved June 9, 1943, as follows: |