The court concluded: "[T]he power vested in a trustee to create an estate in fee includes the power to create or appoint any estate less than a fee unless the donor clearly indicates a contrary intent." (14) Essentially, the Florida court reasoned, the trustees held a special power of appointment
. (15) Therefore, the court affirmed the lower court's decision.
He said to one of my clients, "Why not gift your home to your children through a quit claim deed and then retain a limited power of appointment
to transfer ownership between children?
Political observers said this would further consolidate Nitish's position since the power of appointment
of the officebearers was earlier vested with the national president and the state president of the party.
Subject to the exceptions noted below, the income beneficiary would be deemed to hold a general power of appointment
if she had the power to invade the trust corpus for the benefit of herself, her estate, her creditors, or the creditors of her estate (any one of the foregoing is sufficient).The following powers if possessed by the income beneficiary would not be deemed general powers of appointment for purposes of IRC Section 2041:
(6) If the property is placed in trust, the spouse should be given a life estate with a power of appointment
or a QTIP interest.
The limitation permitted her to exercise her power of appointment
only in favor of Max's descendants, that is, Max and Erla's children and grandchildren.
It amends the definition of "beneficiary" to clarify that a permissible appointee is not a beneficiary unless the power of appointment
is irrevocably exercised in favor of the appointee.
Another option would be to give Tom a "limited power of appointment
," which would permit him in his Will to name the future beneficiaries from an identified class of individuals to receive the remaining trust assets.
A power of appointment
is a right given in a will, trust, or other instrument by one person (the donor) to another (the donee or powerholder) allowing the donee to name the recipient (appointee) of the donor's property at some future time.
The Liberals simply will not share their power of appointment
, or submit them to a process of public scrutiny, whether in the judiciary, Crown corporations, Senate or any other post.
tax court adjudicating the facts had to determine whether Posner, while still alive, possessed a general power of appointment
over a marital trust created by her deceased husband's will.
In general, a person to whom a distribution is or may be made during a period pursuant to a power of appointment
is a potential current beneficiary.