Powers of Appointment

Question 1

Power of Appointment

Answer 1

When a testator/settlor gives another person the power to decide where and whom the property will go, that person has a power of appointment.

Question 2

General Power of Appointment

Answer 2

Is granted when the testator does not leave any conditions or restrictions as to the appointment of the property

permitted to appoint power to anyone, including himself

Question 3

Testamentary Power of Appointment

Answer 3

Must be exercised by donor’s conditions.

Question 4

Effective Power of Appointment

Answer 4

1) instrument is valid
2) terms indicate intent to exercise
3) appointment is permissible

Question 5

Special Power of Appointment

Answer 5

is one where the donee (holder of power) may only appoint property to a limited class of persons authorized by the donor.

Question 6

Ineffective Appointments

Answer 6

Appointments made to those NOT authorized by the donor are ineffective.

Question 7

Takers-in-Default

Answer 7

If the donee of a Power of Appointment fails to exercise the power, the property passes to the takers-in-default designated by the donor in the instrument creating the power.