A general power of appointment allows holders the right to dispose of property in their favor or that of their estate, creditors, or the creditors of their estate. It impacts how a grantor is taxed on the trust income.
A nonrecognition transaction refers to any disposition of property in which the gain or loss is not recognized in whole or part under tax laws, like a like-kind exchange.
A sale or exchange refers to the disposition of property in a value-for-value transaction, as opposed to a disposition by gift, contribution, or similar means.
The term 'settle' generally refers to paying an obligation. In legal contexts, it pertains to resolving a dispute short of adjudication or arranging for the disposition of property. In the realm of securities, it means completing a trade between brokers or between a broker and a customer.
