Power of Appointment Flashcards
Tom died in 2001, leaving a will that bequeathed property in trust “to pay the income to my daughter, Dana, for line, and on her death to distribute the trust principal to such persons, including Dana’s estate, as she appoint by her last will. If Dana does not exercise this power of appt., on Dana’s death the trustee shall distribute the trust principal to Dana’s descendants.”
Tom is the . . . .
Dana is the . . .
Dana’s descendants are . . .
Tom = Donor of the power of appt.
Dana = donee of a general testamentary power of appt.
Descendants = takers in default
Tom died in 2001, leaving a will that bequeathed property in trust “to pay the income to my daughter, Dana, for line, and on her death to distribute the trust principal to such persons, including Dana’s estate, as she appoint by her last will. If Dana does not exercise this power of appt., on Dana’s death the trustee shall distribute the trust principal to Dana’s descendants.”
Dan dies in 2010 leaving a will that bequeaths her residuary estate “one half to my husband and one half to my son.” Did the residuary clause in Dana’s will operate to exercise her testamentary power of appt, even though here will made no reference to the power? EXPLAIN
This is a question of intent.
In PA, the presumption is that she intended to include the power as part of her estate.
Tom died in 2001, leaving a will that bequeathed property in trust “to pay the income to my daughter, Dana, for line, and on her death to distribute the trust principal to such persons, including Dana’s estate as she appoint by her last will that makes specific reference to this power of appt. If Dana does not exercise this power of appt., on Dana’s death the trustee shall distribute the trust principal to Dana’s descendants.”
Dan dies in 2010 leaving a will that bequeaths her residuary estate “one half to my husband and one half to my son.” Did the residuary clause in Dana’s will operate to exercise her testamentary power of appt, even though here will made no reference to the power? EXPLAIN
No. Dana must specifically reference the power.
