§ 957. Modification for limited powers of appointment created prior to
September first, nineteen hundred thirty. (a) General.--In determining
the New York gross estate, there shall be added to the federal gross
estate of a deceased resident the value of all property (other than real
and tangible personal property situated outside New York state) passing
under a limited power of appointment exercised by the decedent (A) by
will or (B) by a disposition which is of such nature that if it were a
transfer of property owned by him, such property would be includible in
his federal gross estate under section two thousand thirty-five, two
thousand thirty-six, two thousand thirty-seven or two thousand
thirty-eight of the internal revenue code.

(b) Definition.-- For purposes of this section, a limited power of
appointment means a power--

(1) with respect to property which is not or was not subject to New
York death tax in the estate of the grantor of such power, but would
have been so taxable except for a statute providing that the tax on the
transfer of such property should be imposed in the estate of the grantee
of such power in the event of its exercise; and

(2) the exercise of which has not required the inclusion of the
property in the decedent's federal gross estate under section two
thousand forty-one of the internal revenue code (relating to general
powers of appointment).