Powers of Appointment Flashcards
Powers of Appointment: Who can it not go to?
Trustee or Executor
Powers of Appointment: What is it?
Legal tool that allows property owner to designate a person to decide how trust assets will be distributed at some point in the future.
Powers of Appointment: Is it a fiduciary power?
NO
Powers of Appointment: Are indefinite beneficiaries allowed?
Yes, this is not the same as a trust.
Powers of Appointment: Is self interest okay?
Yes, if it is a general power of appointment if the Donor’s rules allow it.
Powers of Appointment: Donor?
Person who creates a power of appointment.
Powers of Appointment: Donne?
Person who may exercise the power given/
Powers of Appointment: Object of the Power?
People eligible to take the property.
Powers of Appointment: Taker by default?
The individuals/groups/thing that get the money if the Donne does not exercise the power.
Powers of Appointment: General Power of Appointment: Who can Take?
Donne can take along with other.
Powers of Appointment: Non-General Power of Appointment: Who can take?
Self-taking not allowed. Others.
Powers of Appointment: Why have them?
1) Tax Reasons (Donne treated like owner even if not legally)
2) Flexibility (you decide who gives your stuff away even after you’re dead)
Powers of Appointment: How to have effective exercise of power?
1) Show intent to exercise power.
2) Donne must satisfy the terms imposed by the donor.
Powers of Appointment: Can trust powers be appointment in a new trust?
Yes, but the new test must still benefit the original object as listed by the donor.
