power of appointment

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Related to power of appointment: General Power Of Appointment

Appointment, Power of

A power that is conferred upon a donee to dispose of the donor's property by nominating and selecting one or more third-parties to receive it. The property may consist of tangible items like cars, boats, and household items, or it may consist of an intangible interest in property, such as the right to receive dividend income from stocks.

A power of appointment may be transferred only in writing, such as by deed, trust, or will. Donees who receive an oral promise to be given a power of appointment, however, may bring an action for Promissory Estoppel if they have relied to their detriment on that promise. In no case will a court find that a power of appointment had been created unless the donor's intent to create the power is demonstrated; the person who would hold the power is indicated; the circumstances under which the power could be exercised are identified; and the property that is subject to the power is specified.

No particular semantic formula is necessary for the creation of a power of appointment. Any written expression, however informal, will suffice so long as it clearly indicates an intention to create such a power. Thus, a power of appointment may be created by implication. For example, a devise or bequest of property to a person as he or she may designate to receive it or subsequently transfer it gives that person a power of appointment. A testamentary gift to a donee for life, to be at his or her disposal, or with a right to dispose of it at the donor's death, confers a power of appointment. For example, if a donor gives the donee an automobile to use as the donee sees fit during the donee's lifetime, the donor has given the donee a power of appointment over the automobile. Similarly, if a donor gives the donee authority to dispose of the automobile upon the donor's death, the donor has given the donee a power of appointment over the automobile.

There are three classes of powers of appointment. General powers of appointment give donees the power to dispose of the property in any way they see fit. Limited powers of appointment, also known as special powers of appointment, give donees the power to transfer the property to a specified class of persons identified in the instrument creating the power. Testamentary powers of appointment are powers of appointment that typically are created by wills.

power of appointment

n. the right to leave property by will, transfer, gift or distribution under a trust. Such a power is often found in a trust in which each of the trustors (the creators of the trust, usually a husband and wife) is empowered to write a will leaving his or her share (or some part) to someone. If the power of appointment is not used then it expires on the death of the person with the power.

power of appointment

in property law, authority to appoint persons either from a particular class ‘special power’ or selected by the donee of the power ‘general power’ to take an estate or interest in property.
References in periodicals archive ?
173) The withdrawal right still constitutes a general power of appointment, however, and will potentially trigger estate tax inclusion issues if the withdrawal-right holder passes away while the withdrawal right still persists.
The purpose for this article is to recommend updated power of appointment legislation for New York.
In addition, the spouse may have a testamentary limited power of appointment over the trust property.
Crummey powers are just one type of power of appointment that can enhance a total discretionary trust.
Reportedly, since you refuse to relinquish the power of appointment, Megawati will not make a deal with you.
Letters of wishes may well play a vital role where trustees have been given the immensely wide power to add anyone in the world (other than the settlor, his spouse and the trustees) to a class of beneficiaries, or of objects of a power of appointment or, even to appoint income or capital to anyone in the world (except the above persons).
Though most statutes preclude a trustee from using decanting to add new beneficiaries, many statutes indirectly permit the addition of beneficiaries by allowing the second trust to include a limited power of appointment that theoretically could be used by the power holder to expand the class of beneficiaries.
New York has several provisions regarding the exercise of the power of appointment.
He said to one of my clients, "Why not gift your home to your children through a quit claim deed and then retain a limited power of appointment to transfer ownership between children?
Political observers said this would further consolidate Nitish's position since the power of appointment of the officebearers was earlier vested with the national president and the state president of the party.