Powers of Appointment Flashcards
A power of appointment is…
the authority created in a person to choose the individuals who shall take certain property and the manner in which they take it.
If a power holder dies without exercising or releasing a power…
it lapses.
Those who may receive property under power of appointment are called…
permissible appointees.
Persons designated to take the property if the power holder fails to effectively exercise the power are called…
takers in default of appointment.
A _____ power of appointment is one that is exercisable in favor of the power holder themselves, their estate, their creditors, or the creditors of their estate.
general
A _____ power is one that is exercisable in favor of a specified class of persons that does not include the power holder, their estate, their creditors, or the creditors of their estate.
nongeneral/special
A _____ power is one that is exercisable by the power holder during their lifetime.
presently exerciseable
A _____ power is exercisable only by the power holder’s will.
testamentary
The power holder acts as the donor’s…
agent.
If the power holder does not exercise their general power, their creditors…
cannot reach the property.
A nongeneral power is ______ if it may be exercised in favor of some permissible appointees to the exclusion of others.
exclusionary
A nongeneral power is ______ if it must be exercised in favor of all of the permissible appointees.
nonexclusionary
Nongeneral powers are presumed to be….
exclusionary, unless the donor expressly provides otherwise.
With a nongeneral power of appointment, the power holder’s creditors….
cannot reach the property, even if the power holder exercises the power.
Can a person holding testamentary power of appointment execute a will including a blanket statement for the residue of their estate along with any property over which they have power of appointment?
Yes.
