N.Y. TAX Law § 957

§ 957. Modification for limited powers of appointment created prior to\nSeptember first, nineteen hundred thirty. (a) General.--In determining\nthe New York gross estate, there shall be added to the federal gross\nestate of a deceased resident the value of all property (other than real\nand tangible personal property situated outside New York state) passing\nunder a limited power of appointment exercised by the decedent (A) by\nwill or (B) by a disposition which is of such nature that if it were a\ntransfer of property owned by him, such property would be includible in\nhis federal gross estate under section two thousand thirty-five, two\nthousand thirty-six, two thousand thirty-seven or two thousand\nthirty-eight of the internal revenue code.\n (b) Definition.-- For purposes of this section, a limited power of\nappointment means a power--\n (1) with respect to property which is not or was not subject to New\nYork death tax in the estate of the grantor of such power, but would\nhave been so taxable except for a statute providing that the tax on the\ntransfer of such property should be imposed in the estate of the grantee\nof such power in the event of its exercise; and\n (2) the exercise of which has not required the inclusion of the\nproperty in the decedent's federal gross estate under section two\nthousand forty-one of the internal revenue code (relating to general\npowers of appointment).\n