Powers of Appointment

Question 1

definition

POWERS OF APPOINTMENT

Answer 1

= authority that one person gives another to say where that person’s property goes

Example = creator of trust may give trust beneficiary the authority to say who gets the trust property at the beneficiary’s death

Question 2

donor

TERMINOLOGY

Answer 2

= his will creates power of appointment

Question 3

donee

TERMINOLOGY

Answer 3

= recipient of power created by donor

Question 4

takers by default

TERMINOLOGY

Answer 4

= recipients of power if donee declines to exercise power

Question 5

personal representative for will

TERMINOLOGY

Answer 5

= executor

Question 6

personal representative for intestacy

TERMINOLOGY

Answer 6

= administrator

Question 7

use of will

APPOINTMENT OF PERSONAL REPRESENTATION

Answer 7

• the executor or executors named or designated in the will
• if no such person qualifies, to any substitute or successor executor named or designated in the will
• if none of the foregoing person qualify, the clerk shall grant letters of administration to a person qualified to serve as an administrator

Question 8

elements

GENERAL TESTAMENTARY PWR OF APPT

Answer 8

general = could appoint this property to

• herself
• creditors of herself or her estate

testamentary = restricted in access to power

• can only access power at death by exercising with will
• can’t exercise power during life

Question 9

general elements

GENERAL TESTAMENTARY PWR OF APPT

Answer 9

= could appoint this property to

• herself
• creditors of herself or her estate

Question 10

testamentary elements

GENERAL TESTAMENTARY PWR OF APPT

Answer 10

= restricted in access to power

• can only access power at death by exercising with will
• can’t exercise power during life

Question 11

exercise of power

GENERAL TESTAMENTARY PWR OF APPT

Answer 11

• will must disclose in some fashion intent to exercise power
• generic residuary clause = insufficient

Question 12

generic residuary clause

GENERAL TESTAMENTARY PWR OF APPT

Answer 12

= insufficient

Question 13

elements of power

SPECIFIC TESTAMENTARY PWR OF APPT

Answer 13

special = restricted in who she may appoint

testamentary = restricted in access to power

Question 14

special element

SPECIFIC TESTAMENTARY PWR OF APPT

Answer 14

= restricted in who she may appoint

Question 15

testamentary element

SPECIFIC TESTAMENTARY PWR OF APPT

Answer 15

= restricted in access to power

Question 16

exercise of power

SPECIFIC TESTAMENTARY PWR OF APPT

Answer 16

if required to specifically refer to a power of appointment, generic clause = insufficient

Question 17

applicable law

EXAM INSTRUCTIONS

Answer 17

1. wills = tn (compare to UTC)
   intestacy = tn (compare to UTC)
2. trusts = UTC (or majority if UTC silent)
3. non-probate transfers = majority
4. powers of appointment = majority
5. uniform prudent investment act = adopted by tn
6. uniform principle and income act = adopted by tn