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the decedent. It does not include a power created or held on property transferred by the decedent. A power of appointment includes all powers which are, in substance and effect, powers of appointment regardless of how they are identified and regardless of local property laws. For example, if a settlor transfers property in trust for the life of the settlor’s spouse, with a power in the spouse to appropriate or consume the principal of the trust, the spouse has a power of appointment. Some powers do not in themselves constitute a power of appointment. For example, a power to amend only administrative provisions of a trust that cannot substantially affect the beneficial enjoyment of the trust property or income is not a power of appointment. A power to manage, invest, or control assets, or to allocate receipts and disbursements, when exercised only in a fiduciary capacity, is not a power of appointment. General power of appointment. A general power of appointment is a power that is exercisable in favor of the decedent, the decedent's estate, the decedent's creditors, or the creditors of the decedent's estate, except the following. 1. A power to consume, invade, or appropriate property for the benefit of the decedent that is limited by an ascertainable standard relating to health, education, support, or maintenance of the decedent. 2. A power exercisable by the decedent only in conjunction with: a. The creator of the power; or b. A person who has a substantial interest in the property subject to the power, which is adverse to the exercise of the power in favor of the decedent. A part of a power is considered a general power of appointment if the power: 1. May only be exercised by the decedent in conjunction with another person, and 2. Is also exercisable in favor of the other person (in addition to being exercisable in favor of the decedent, the decedent's creditors, the decedent's estate, or the creditors of the decedent's estate). When there is a partial power, figure the amount included in the gross estate by dividing the value of the property by the number of persons (including the decedent) in favor of whom the power is exercisable. Date power was created. Generally, a power of appointment created by will is considered created on the date of the testator's death. A power of appointment created by an inter vivos instrument is considered created on the date the instrument takes effect. If the holder of a power exercises it by creating a second power, the second power is considered as created at the time of the exercise of the first. Attachments If the decedent ever possessed a power of appointment, attach a certified or verified copy of the instrument granting the power and a certified or verified copy of any instrument by which the power was exercised or released. You must file these copies even if you contend that the power was not a general power of appointment, and that the property is not otherwise includible in the gross estate. Schedule I—Annuities If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. Complete Schedule l and file it with the return if you answered “Yes” to question 16 of Part 4—General Information. Enter on Schedule I every annuity that meets all of the conditions under General, later, and every annuity described in paragraphs (a) through (h) of Annuities Under Approved Plans, later, even if the annuities are wholly or partially excluded from the gross estate. For a discussion regarding the QTIP treatment of certain joint and survivor annuities, see the Schedule M, line 3, instructions. General These rules apply to all types of annuities, including pension plans, individual retirement arrangements (IRAs), purchased commercial annuities, and private annuities. In general, you must include in the gross estate all or part of the value of any annuity that meets the following requirements. • It is receivable by a beneficiary following the death of the decedent and by reason of surviving the decedent. • The annuity is under a contract or agreement entered into after March 3, 1931. • The annuity was payable to the decedent (or the decedent possessed the right to receive the annuity) either alone or in conjunction with another, for the decedent's life or for any period not ascertainable without reference to the decedent's death or for any period that did not in fact end before the decedent's death. • The contract or agreement is not a policy of insurance on the life of the decedent. Note. A private annuity is an annuity issued by a party not engaged in the business of writing annuity contracts, typically a junior generation family member or a family trust. An annuity contract that provides periodic payments to a person for life and ceases at the person's death is not includible in the gross estate. Social security benefits are not includible in the gross estate even if the surviving spouse receives benefits. An annuity or other payment that is not includible in the decedent's or the survivor's gross estate as an annuity may still be includible under some other applicable provision of the law. For example, see Powers of Appointment and the instructions for Schedule G—Transfers During Decedent's Life, earlier. See also Regulations section 20.2039-1(e). If the decedent retired before January 1, 1985, see Annuities Under Approved Plans, later, for rules that allow the exclusion of part or all of certain annuities. Part Includible If the decedent contributed only part of the purchase price of the contract or agreement, include in the gross estate only CAUTION ! -32- Instructions for Form 706 (Rev. 09-2022)