Skip navigation
TE0220_kolasa scales of justice Getty Images-104383981.jpg

Creditor General Powers of Appointment

What are the tax considerations if state law limits appointive property to the underlying debt for GPAs?
Resources

Basis optimization for credit shelter and irrevocable trusts often involves granting the trust beneficiary a general power of appointment (GPA) over trust assets to achieve stepped-up basis.  One planning variation limits appointees to the powerholder’s creditors or creditors of his estate (creditor GPAs). This seemingly achieves basis step-up without much risk of having property diverted to appointees outside the donor’s dispositive scheme.

All access premium subscription

Please Log in if you are currently a Trusts & Estates subscriber.


If you are interested in becoming a subscriber with unlimited article access, please select Subscription Options below.


Questions about your account or how to access content?


Contact: [email protected]

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish