What qualifies a Marital Power of Appointment for the marital deduction?

A Marital Power of Appointment qualifies for the marital deduction primarily because it is considered a general power of appointment. A general power allows the holder, typically the surviving spouse in this context, to control the property in a way that they can direct its disposition, including drawing upon the assets or property during their lifetime or at death. This characteristic adds value to the spouse's estate, presenting a significant tax advantage.

For the marital deduction, the assets must be included in the surviving spouse's taxable estate, which is guaranteed when there is a general power of appointment. This ensures that the property is subject to estate tax at the time of the surviving spouse’s death, allowing for a deferral of taxes until that point. In contrast, limited powers of appointment do not qualify since they restrict the holder's ability to affect the ultimate distribution of property, thereby not offering the same tax benefits.

The requirement for the power to be explicitly exercised during the donor's lifetime or needing the transferor's consent does not pertain to the general characteristic of the power itself in qualifying for the marital deduction. It is the nature of the power being general, allowing broad control over the asset allocation, that is critical in this context.