Also known as: donees of power · donee of a power · power donee
Written by attorneys · grounded in primary & secondary sources — see below
A person on whom a power of appointment has been conferred. The donee receives authority to direct the disposition of property that belongs to another or is subject to the power.
Elena transferred vineyard land into a trust and named her farm manager Marco as the person authorized to direct the land among her children, his own estate, or his creditors. Marco holds the authority to decide who receives the property after Elena's death. Because Marco can appoint to his estate and creditors, the power he received qualifies as general rather than limited to others.
Director Leo placed film royalties in trust and named producer Dana as the person who could direct the royalties only through a will among specified crew members. Dana later signed a lifetime agreement attempting to reallocate the royalties. The lifetime agreement had no effect because Dana could exercise the authority only at death through a will.
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The donee is the person on whom the donor confers the power. The donee may be a family member, a manager, or any competent individual the donor selects. The donee receives authority to appoint the property but does not own it outright.
A donee cannot contract to exercise a power that is exercisable only at death. Any such promise is unenforceable, although the promisee may recover restitution for value given. A donee may contract to exercise a presently exercisable power if the contract benefits only permissible appointees.
Creditors of the donee generally cannot compel exercise of the power or reach the appointive property. The power remains personal to the donee unless a statute provides otherwise.
A donee must have the same capacity to appoint as would be required to transfer similar owned property. A married woman who is the donee has the same capacity as if she were unmarried.
…Casner, recommended the following statement: “§ 13.7 Spousal Rights in Appointive Assets on Death of Donee. The spouse of the donee of a power of appointment is entitled to treat appointive assets as owned assets of the donee on the donee’s death, only to the extent provided by statute.” Restatement (Second) of Property — Donative…