Power of Appointment

A power that gives an individual the right to transfer a trust’s assets upon termination of the trust or other specified circumstances. The individual given the power is usually referred to as a “holder” of the power. The power of appointment may be general, allowing the property to be appointed to anyone, including the holder, or limited, allowing the property to be distributed to a specified group. Property subject to a general power of appointment is generally included in the holder’s gross estate for federal estate tax purposes.A power that gives an individual the right to transfer a trust’s assets upon termination of the trust or other specified circumstances. The individual given the power is usually referred to as a “holder” of the power. The power of appointment may be general, allowing the property to be appointed to anyone, including the holder, or limited, allowing the property to be distributed to a specified group. Property subject to a general power of appointment is generally included in the holder’s gross estate for federal estate tax purposes.

Estate Planning Blog

Get useful estate planning insights about wills, trusts, elder law, special needs planning, and more from the estate planning attorneys at TuckerAllen.

Read More

Reference: Power of Appointment