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1 Use and purpose A A power of appointment is a power to name someone to receive a bene cial interest in property The grantor of the power is called the donor The person receiving the power is called the holder or donee The parties to whom the holder gives property by exercising the power are called the appointees The persons who receive the property if the holder permits the power to lapse are called the takers in default B A power of appointment is general if there are no restrictions on the donee s choice of appointees If there are restrictions, then the power is termed a limited or special power C A power of appointment is used (1) When the estate owner wants someone else to make decisions concerning his or her property (2) When the estate owner does not know the future needs of his or her bene ciaries or how many bene ciaries there will be (3) When the assets would be subject to the generation-skipping transfer tax (GSTT) upon a taxable termination of the trust The inclusion of assets in the estate of the holder results in a lower tax than GSTT because of a graduated rate schedule rather than a at tax rate at the highest estate tax rate (4) When the estate owner desires to qualify assets for the marital deduction but would like to have a right to designate who will receive the property 2 General and special (limited) powers A 5 + 5 power (1) The 5 or 5 power is useful for avoiding estate taxes as well as gift taxes The right of invasion must be made noncumulative (2) Property subject to a general power will be included in the estate of the holder only to the extent that the property that could have been appointed by the exercise of the power, but has lapsed, exceeds the greater of: (a) $5,000 (b) 5 percent of the total value of the funds subject to the power as valued at the time of the lapse (3) Estate tax consequences (a) Example: Mark was the income bene ciary of a trust with assets of $200,000 Assume the value of the trust does not change Mark was given a noncumulative power to withdraw $10,000 per year He did not exercise the power, which resulted in a lapse each year When Mark dies, only $10,000 is included in his gross estate.

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NOTE There is a method named setAttributeNode() that is defined as part of the Element interface. This method should allow you to attach a complete Attr object to an Element, but the method did not work properly in the version of JAXP used to develop the example programs for this book, so no example has been included. When a working version of the method is released, an example will be posted to the Web site of this book.

Summary

# iptables L Chain INPUT (policy ACCEPT) target prot opt source Chain FORWARD (policy ACCEPT) target prot opt source Chain OUTPUT (policy ACCEPT) target prot opt source

In this chapter, we surveyed the general landscape of Java servlet technology, covering the basics related to

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306 - Estate Planning The lapse in prior years is ignored because the amount does not exceed the greater of $5,000 or 5 percent of the corpus of $200,000 (b) Example: Marge was income bene ciary of a trust with assets of $70,000 Marge was also given a noncumulative power to withdraw $10,000 per year (which she did not exercise) At the expiration of each year, Marge has released a general power to the extent of $5,000 (ie, a $10,000 lapse minus the greater of $5,000 or 5 percent of $70,000 [$3,500]) (c) If Marge dies in the sixth year of the trust s existence and assets remain constant, Marge s gross estate would include $35,000 on account of this trust The $35,000 consists of $10,000 on account of the power held by the decedent at the time of death and $25,000 on account of the lapse of the power in each of the prior ve years (4) Gift tax consequences: Failure to exercise results in gifts to the remaindermen of the trust, with a reduction each year by the amount of the holder s (Marge) life estate in the lapsed amounts (5) Income tax consequences: If the bene ciary has a 5 or 5 power and fails to exercise the power in a given year, the bene ciary becomes the grantor of that portion of the trust over which the power has lapsed B Crummey provisions (1) Gifts placed in an irrevocable trust are gifts of a future interest, but by placing a lapsing power (Crummey power) to withdraw, a future interest is converted to a present interest A Crummey power makes a transfer to a trust a gift of a present interest (2) The bene ciary has a noncumulative right to withdraw a speci ed amount of property transferred to a trust within a speci ed period (3) If the right is not exercised, the annual transfer for the year remains in the trust for management by the trustee If the right is exercised, the trustee must deliver the fund to the bene ciary (4) The lapse of the withdrawal power to the extent it exceeded the greater of $5,000 or 5 percent of trust corpus causes a taxable gift by the power holder to the remaindermen of the trust Because the remaindermen (possibly unknown) do not have the power to withdraw the gift from the trust, the bene ciary made a future interest gift, which does not qualify for the annual exclusion (5) Two negative tax consequences of this taxable gift by the Crummey trust bene ciary: (a) The bene ciary made a transfer subject to gift tax, which would use up some of his or her uni ed credit (b) The property subject to the lapsed power would be included in the bene ciary s estate for estate tax purposes as a transfer in which the interest has been retained, because the bene ciary usually has some continuing right to the trust (ie, a life estate) property (6) The gift tax problem created by the lapse of a general power to trust property in excess of $5,000 or 5 percent of the trust corpus is resolved by the following: (a) No gift tax is due by reserving in the bene ciary a power that keeps the lapse from being a completed gift This is the power to direct where the trust property will go upon lapse of the withdrawal power (b) The estate tax problem is not avoided, but most Crummey trusts are intended to be paid out during the bene ciary s lifetime, so this should not be a problem.

Understanding and using servlets Developing servlets Deploying servlets Managing sessions with servlets Using servlet-related technologies, such as JSP

After the protected LSP-Path is successfully established, all routers (except the Tail router of the protected LSP) assume the PLR role and start signaling the detour LSPs. The PATH messages generated by each router (when they assume the PLR role to signal the detour LSPs) have the following content: They all use the same SESSION object and SENDER_TEMPLATE object as the protected LSP. Thus, the detour LSP has the same LSP-id, tunnel-id, ext-tunnel-id value, and sender address. They all have a DETOUR object containing the PLR router s IP address and the IP address that the detour LSP is trying to avoid. The ERO contains a path (list of link IP addresses) to reach the Tail router of the protected LSP that avoids the IP address being protected (the avoid node id field in the DETOUR object).

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