What is a Power of Appointment?
A power of appointment is a valuable estate planning tool,
which, broadly speaking, is a power that is frequently conferred on
a person, including an executor, and the trustee and/or beneficiary
of a testamentary or inter vivos trust (the "donee"), in
relation to the disposition of assets including a trust fund. More
specifically, the donee is provided with an optional power, which
if exercised, usually by written instrument or in the donee's
will, allows them to dispose of property at their discretion, which
would otherwise be disposed of in accordance with the provisions of
the testamentary or inter vivos trust if the power is not
exercised.
How a Power of Appointment Works
