Estate and Wealth Transfers 2--Concept of powers of appointment

Question 1

What is a general power of appointment is a power of appointment?

Answer 1

An individual has a general
power of appointment if he has the power to determine who, including himself, may become the owner of property. It is exercisable exercisable in favor of any
one or more of the powerholder, the powerholder’s estate, a creditor of the
powerholder, or a creditor of the powerholder’s estate.

Question 2

Define general powers of appointment.

Answer 2

A general power of appointment is the power to
appoint property to oneself, one’s estate, one’s creditors, or the creditors of one’s
estate that is not limited (1) by the standards of health, education, maintenance, or
support, or (2) to an amount not greater than five percent of the principal or $5,000,
determined on an annual basis, noncumulatively

Question 3

Define general powers of =special powers of appointment.

Question 4

Describe the limitations of each type of powers of appointment