Powers of Appointment Flashcards
T’s will: “income to my daughter D for life, and on her death to distribute the trust principal to such persons, as D appoints by her last will.”
What type of appointment is this and how much power does D have?
This is a general testamentary power of appointment because T did not limit the class of beneficiaries D could appoint. D could appoint the property to anyone.
T’s will: “income to my daughter D for life, and on her death, principal to such on D’s descendants as she shall appoint by her last will. In default of appointment, to D’s children in equal shares.”
What type of appointment is this and how much power does D have?
This is a special testamentary power of appointment because T limits the class of beneficiaries that D can appoint. Here, D can only appoint her descendants, which means D cannot appoint herself, her creditors, or her estate.
What is default of appointment?
This is when a person with general or special testamentary of appointment do not name any beneficiaries of the bequeathed estate in their will.
Is this an example of testamentary of appointment: will bequeaths a residuary estate “half to my husband and half to my son”?
No. A will must expressly exercise the testamentary power of appointment. This provision at issue is silent, so the takers in default of appointment will get the residual appointment.
Is this an example of testamentary of appointment from a person with special testamentary power of appointment:
“all my property, including any property over which I may have the power of appointment, to my daughter”?
No. A blanket exercise of power in a will does not exercise the special testamentary power in favor of the daughter.
To exercise a power of appointment, T must have a specific reference to the power (“with respect to the power of appointment given by my mother’s will, I hereby appoint my daughter…”)
