Powers Of Appointment

Question 1

What is a power of appointment?

Answer 1

When a testator/settlor (the donor) gives another person the power to decide where and to whom the testator’s property will go.

Question 2

When is a general power of appointment granted?

Answer 2

When the testator does not leave any conditions or restrictions as to the appointment of the property. (Donee permitted to appoint power to anyone, including himself)

Question 3

A testamentary power of appointment can only be exercised by:

Answer 3

The donee’s will and according to donor’s conditions

Question 4

A donee’s power is effectively exercised in an instrument only if:

Answer 4

1. The instrument is valid
2. The terms indicate the holder’s intent to exercise the power and are consistent with conditions imposed by testator; AND
3. The appointment is permissible

Question 5

When is an appointment “permissible”?

Answer 5

If it’s to a person or group authorized by the donor

Question 6

Under UPC, a general residuary clause expresses an intention to exercise a power of appointment held by the testator only if:

Answer 6

1. The testator’s will manifests intention to include the property subject to the power; OR
2. The power is a general power AND the creating instrument does not contain a gift if the power is not exercised

Wtf does this mean 🤔

Question 7

When is a blanket exercise clause not sufficient to show intent to exercise the power of appointment?

Answer 7

If the donor required the power be exercised by an express or specific reference; additional evidence will be needed to prove donor’s intent