PUBLIC LAWS-CH. 168-APR. 2, 1948 [62 STAT. conjunction with any person) in such manner that the appointee may possess or enjoy any part of such property after such termination or failure of the interest trans- ferred to the donee spouse. For the purposes of this clause the donor shall be considered as having imme- diately after the transfer to the donee spouse such power to appoint even though such power cannot be exercised until after the lapse of time, upon the occurrence of an event or contingency, or upon the failure of an event or contingency to occur. An exercise or release at any time by the donor, either alone or in conjunction with any person, of a power to appoint an interest in property, even though not otherwise a transfer, shall, for the purposes of clause (i) of this subparagraph, be considered as a transfer by him. Except as provided in sub- Infra. paragraph (E), where at the time of the transfer it is impos- sible to ascertain the particular person or persons who may receive from the donor an interest in property so trans- ferred by him, such interest shall, for the purposes of clause (i) of this subparagraph, be considered as transferred to a person other than the donee spouse. "(C) Where the assets out of which, or the proceeds of which, the interest transferred to the donee spouse may be satisfied include a particular asset or assets with respect to which no deduction would be allowed if such asset or assets were transferred from the donor to such spouse, then the value of the interest transferred to such spouse shall, for the Ante, p. 1 purposes of subparagraph (A), be reduced by the aggregate value of such particular assets. "(D) Joint Interests. -If the interest is transferred to the donee spouse as sole joint tenant with the donor or as tenant by the entirety, the interest of the donor in the property which exists solely by reason of the possibility that the donor may survive the donee spouse, or that there may occur a severance of the tenancy, shall not be considered for the Ante, p. 125. purposes of subparagraph (B) as an interest retained by the donor in himself. "(E) Trust With Power Of Appointment In Donee Spouse.-Where the donor transfers in trust an interest in property, if under the terms of the trust his spouse is entitled for life to all the income from the corpus of the trust, payable annually or at more frequent intervals, with power in the donee spouse to appoint the entire corpus free of the trust (exercisable in favor of such donee spouse, or of the estate of such donee spouse, or in favor of either, whether or not in each case the power is exercisable in favor of others), and with no power in any other person to appoint any part of the corpus to any person other than the donee spouse- "(i) the interest so transferred in trust shall, for the Ante, p. 126. purposes of subparagraph (A), be considered as trans- ferred to the donee spouse, and "(ii) no part of the interest so transferred in trust 4Ane, p. 12. shall, for the purposes of subparagraph (B) (i), be con- sidered as retained in the donor or transferred to any person other than the donee spouse. This subparagraph shall be applicable only if, under the terms of the trust, such power in the donee spouse to appoint the corpus, whether exercisable by will or during life, is exer- cisable by such spouse alone and in all events. 126
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