(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).