Also known as: donee of a power · donees of the power · power donee
Written by attorneys · grounded in primary & secondary sources — see below
A person on whom a power of appointment is conferred or in whom it is reserved. The donee holds authority to designate recipients of beneficial ownership interests in or powers of appointment over the appointive property.
Rafael created an irrevocable family trust funded with shares of his brokerage firm. The trust instrument stated that Rafael or his designated managing partner could reallocate beneficial interests among his descendants. Rafael never designated a managing partner. Under the instrument language, Rafael holds the authority to reallocate the interests himself.
Elena transferred vineyard land into a trust and granted her farm manager Marco authority to appoint the land among her children, Marco's own estate, or agricultural lenders holding his loans. Marco can direct the property to his estate. Marco therefore functions as the person holding the appointment authority under the trust terms.
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The creator qualifies as the donee when the instrument confers or reserves the power in that same person. The power remains with the creator if no separate designation occurs.
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The property passes to the donee or the donee's estate rather than reverting to the donor. This rule applies when an attempted appointment fails and no default clause exists in the creating instrument.
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A power is general if the donee can appoint to the donee, the donee's estate, or the creditors of either. Inclusion of other permissible appointees does not change the classification when the donee can benefit personally.
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