For what purposes might a general power of appointment be advantageous regarding gross estate?

A general power of appointment can be advantageous in terms of maintaining a lesser gross estate value because it allows the individual holding the power to effectively choose who will receive the assets upon their death. This flexibility can permit the holder to make decisions that may ultimately lead to a reduction in the gross estate at their time of passing.

For example, if the individual permits certain assets to be distributed to beneficiaries who may not be subject to estate tax, or if they strategically allocate assets in a way that minimizes the value of their own estate, it can lead to a lower gross estate value. The ability to direct assets can also facilitate gifting strategies, enabling the holder to gift assets during their lifetime, which can further decrease the estate's valuation.

In this context, simplifying the distribution process can be a result of the general power of appointment; however, the main focus in terms of estate value is on the potential to lower that value through wise management of asset distribution. Maximizing tax deductions is not a direct function of a general power of appointment, and creating more complicated estate plans runs counter to the advantage of simplification that this type of power seeks to provide.