Tips From the Pros: Powers of Appointment And Fiduciary DutiesTips From the Pros: Powers of Appointment And Fiduciary Duties

A power of appointment (POA), among the useful tools in estate planning, is a dispositive power to decide who will take trust property next and the time, terms, shares and conditions under which the recipient(s) will receive it. A POA is conferred by the owner of property, the donor, in a will or trust instrument and is given to a person traditionally called the “donee” in the Restatements of Property but called the “powerholder” in the Uniform Powers of Appointment Act (the Act).¹ A POA may be exercisable currently (a lifetime or presently exercisable POA) on the occurrence of a specified event, on the satisfaction of an ascertainable standard, on the passage of a specified time or on the powerholder’s death. POAs are often used in trus...