Power of Appointment

Question 1

power of appointment

Answer 1

Powers of Appointment
- A power of appointment is an authority created in a donee enabling the donee to designate, within the limits prescribed by the donor of the power, the persons who shall take certain property and the manner in which they shall take it.

• A general power of appointment is exercisable in favor of the donee, her estate, her creditors, or the creditors of her estate.
• A special power of appointment, on the other hand, is exercisable in favor of a specified class of persons that does not include the donee, her estate, her creditors, or the creditors of her estate.
• If the named beneficiary no longer exists and there is no alternative provision, a resulting trust arises in which the settlor is the beneficiary.
• A testamentary power is one that is exercisable only by the Donee’s will.