Power of Appointment
A power that gives an individual the right to transfer a trust’s assets upon termination 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.