DISREGARD OF UNEXERCISED POWERS OF APPOINTMENT IN DETERMINING POTENTIAL CURRENT BENEFICIARIES OF ESBT.

SEC. 234. DISREGARD OF UNEXERCISED POWERS OF APPOINTMENT IN DETERMINING POTENTIAL CURRENT BENEFICIARIES OF ESBT.(a) In General.—Section 1361(e)(2) (defining potential current beneficiary) is amended—(1) by inserting “(determined without regard to any power of appointment to the extent such power remains unexercised at the end of such period)” after “of the trust” in the first sentence, and(2) by striking “60-day” in the second sentence and inserting “1-year”.(b) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2004.