8. Powers of Appointment

Question 1

What are powers of appointment?

Answer 1

Donee (TP) may designate takers + manner of taking (within creator’s limits)

Question 2

When may powers of appointment be exercised?

Answer 2

During Donee’s lifetime (presently exercisable powers)

By Donee’s will (testamentary powers)

Question 3

What type of powers of appointment are there?

Answer 3

General (Donee can appoint;)

• Donee/Creditors
• Donee’s estate/Creditors

Special (Donee can distribute to;)
- Limited class of appointees

Question 4

What is the difference between General and Special Powers of Appointment?

Answer 4

General PoA
- If Donee refuses to distribute => Donee’s PoA can be delegated to Donee’s creditor/estate/estate’s creditors

Special PoA
- If Donee refuses to distribute => Gift passes to class members