Special Power of Appointment
Example: "I leave my cactus collection to my children, my wife Pat to choose who receives which cactus."
A special power of appointment allows the recipient to distribute the designated property among a specified group or class of people, not including donee, donee's estate, creditors of donee, or creditors of donee's estate. For example, a testator might grant his brother the special power to distribute property among the testator's three children. The brother would then have the authority to choose which of the testator's children gets which property. Unlike a general power of appointment, the refusal of the appointed party to exercise a specific power of appointment causes the designated property to revert as a gift to the members of a group or a class.
A special power of appointment may be exclusive or nonexclusive. If exclusive, the donee can appoint all the property to one or more members of the class of permissible appointees to the exclusion of the other members of the class. If nonexclusive, the donee must appoint some property to each object.
Special powers of appointment also appear in the context of a trust and are primarily used to reduce liability for generation-skipping transfer tax, or to provide asset protection trust features without fraudulent conveyance liability. Such trusts are referred to as SPA Trusts.
Read more about this topic: Power Of Appointment
Famous quotes containing the words special, power and/or appointment:
“Here in the U.S., culture is not that delicious panacea which we Europeans consume in a sacramental mental space and which has its own special columns in the newspapers—and in people’s minds. Culture is space, speed, cinema, technology. This culture is authentic, if anything can be said to be authentic.”
—Jean Baudrillard (b. 1929)
“No punishment has ever possessed enough power of deterrence to prevent the commission of crimes. On the contrary, whatever the punishment, once a specific crime has appeared for the first time, its reappearance is more likely than its initial emergence could ever have been.”
—Hannah Arendt (1906–1975)
“In not having an appointment at Harvard, I’m in the company of a great many people whose work I admire tremendously, in particular women of color.”
—Catharine MacKinnon (b. 1946)