Section 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).