A practical Look at Spring The Delaware Tax Trap to Avert Generation Skipping Transfer Tax
James Spica
A PRACTICAL LOOK AT SPRINGING THEDELAWARE TAX TRAP TO AVERTGENERATION SKIPPING TRANSFER TAXJames P. Spica* Editors’ Synopsis: “Delaware tax trap” is the colloquial name among tax practitioners for Internal Revenue Code section 2041(a)(3) (and its gift tax counterpart, section 2514(d)), which provides that assets subject to a power of appointment are included in the power holder’s gross estate if the holder exercised the power to create another power that “under the applicable local law can be...