A power of appointment is the legal authority to make another person the outright owner of the property left by a decedent. A donor gives the power to a donee so that person may choose the beneficiaries of his trust or will.
Definition from Nolo’s Plain-English Law Dictionary
The legal authority to decide who will receive someone else's property, usually property held in a trust. Most trustees can distribute the income from a trust only according to the terms of the trust, but a trustee with a power of appointment can choose the beneficiaries, sometimes from a list of candidates specified by the grantor. For example, Karin creates a trust with power of appointment to benefit either the local art museum, symphony, library, or park, depending on the trustee's assessment of need.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:22 pm