Also known as: life estate with general power of appointment · life estate · general power of appointment
Written by attorneys · grounded in primary & secondary sources — see below
A life estate in property accompanied by a presently exercisable general power of appointment over the remainder interest. The power permits the life tenant to appoint the property to the tenant, the tenant's creditors, the tenant's estate, or creditors of the tenant's estate without enlarging the estate into a fee simple.
Leo Lynch's will left his family home to his surviving spouse Lillian Locke as a life estate with a general power of appointment over the remainder. After Leo's death the constitutional homestead right in the home was valued and charged against Lillian's statutory homestead allowance under the probate code. The charging reduced the cash allowance she could claim from the estate.
Liam Larson created a trust giving his wife Laura Lewis a life estate in the income together with a presently exercisable general power of appointment over the corpus. The trust instrument excluded any power limited by an ascertainable standard or requiring trustee consent. Laura's power therefore qualified as a power of withdrawal under the trust code definition.
Select any source to read its text and confirm it supports the definition.
Lorenzo Lugo conveyed property to a trust for his own life benefit while reserving a general power of appointment over the remainder. When creditors obtained a judgment against Lorenzo the court subjected the trust property to their claims even though the power remained unexercised. The reserved power prevented the property from being shielded from creditors.
Logan Lane held Blackacre as a joint tenant with his sister and also possessed a general power of appointment over the remainder after his life estate. Logan executed a deed purporting to sever the joint tenancy and appoint the property to a third party. The court examined whether the power allowed the severance to take effect during his lifetime.
Liberty Trust received a bequest creating a life estate in the surviving spouse with a general power of appointment exercisable by deed or will. The estate claimed the federal marital deduction on the ground that the power satisfied the statutory requirements for a qualifying terminable interest. The deduction was allowed because the spouse could appoint the property to herself or her estate.
Lakeshore Industries was named trustee under a will that gave the testator's son a life estate coupled with a general power of appointment conditioned on his marrying within a specified religious group. The son challenged the condition as an invalid restraint on marriage. The court considered whether the power remained general despite the condition attached to its exercise.
No. The Restatement provides that broad powers of disposition do not cause the owned interest of the life tenant to be enlarged into a fee simple even when the power is presently exercisable over the remainder.
The deduction is available when the surviving spouse receives a life estate together with a general power of appointment exercisable in favor of the spouse or the spouse's estate, satisfying the terminable-interest exception under the tax code.
Yes. When a person transfers property in trust for life and reserves a general power to appoint the remainder, the property can be subjected to the claims of creditors to the extent other assets are insufficient.
The sole holder of a presently exercisable general power of appointment is deemed to act for beneficiaries to the extent their interests are subject to the power when granting consent or approval regarding trust administration.
…alternative is for such an owner to convey his/her interest to coowners or relatives pursuant to 25 CFR 152.25 and reserve a life estate, thus retaining the benefits of the interest while assuring its continued individual, rather than tribal, ownership. A third alternative, if feasible, is to partition the tract in such a…