Powers of Appointment and Future Interests

Question 1

Power of appointment

Answer 1

1. Donor
2. Donee
3. Objects
4. No ascertainble Bs
5. No fiducary duty
6. No court oversight
7. Precatory = gift
8. Resulting trust if no exercise

DDOAFCOPER

1. Donor, Objects, Donee;
2. No Ascertainable Bs or Fiduciary duty;
3. Precatory = gift, Resulting trust if no exercise

DOD-NAF-PER (Donor Objects Donee No Ascertainable Fiduciary Precatory Exercise Resulting)

Question 2

General power of appointment

Answer 2

1. Donee can exercise in favor of themselves
2. Owner equivalent for tax
3. Presently exercisable, C may attach

DETOT-PECA (Donee Exercise Themselves Owner Tax - Presently Exercisable Creditor Attach).

Question 3

Non-general power of appointment

Answer 3

1. Donee may not exercise in favor of themselves
2. Not owner equivalent for tax or creditor attachment

DETOT-PECA (Not Donee Exercise Themselves Owner Tax - Presently Exercisable Creditor Attach).

Question 4

Rule of convenience

Answer 4

1. A class will be deemed to close
2. when the first member within the class can take
3. preference for early vesting
4. (certainty and marketability of title)

CCFEV (Class Close First Early Vesting)

Question 5

Future interest essay

Answer 5

1. when does a right vest?
2. what is the effect of that right?
3. if you have a class gift and there are present members of the class, when does it vest, and what happens if new members come into the class?

WEC (When Effect Class)