Also known as: nongeneral power of appointment · non-general powers of appointment · non-general power of appointment · special powers of appointment · limited powers of appointment
Written by attorneys · grounded in primary & secondary sources — see below
A power of appointment that permits the donee to appoint property only to persons other than the donee, the donee's estate, or the creditors of either.
Nia Nkosi held a presently exercisable nongeneral power to appoint trust principal only among her issue. After incurring unexpected medical expenses, Nia executed a written release of the entire power in favor of the default takers. The trustee honored the release and refused Nia's later attempt to appoint the assets to her husband.
Noelle North held a presently exercisable nongeneral power to appoint trust assets among her children. She contracted with her daughter Natasha Nielsen to appoint half the assets to Natasha in exchange for Natasha's promise to care for Noelle. The contract was enforceable because it conferred benefits only on permissible appointees.
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Nathaniel Newman held a nongeneral power to appoint remainder interests among his siblings. After Nathaniel defaulted on a large personal loan, his creditor sought to compel exercise of the power. The court denied the claim because property subject to a nongeneral power is exempt from the donee's creditors.
A power is general only if the donee may appoint to the donee, the donee's estate, or the creditors of either. A nongeneral power excludes all three of those targets even if the permissible class is otherwise broad.
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The donee may release the power in whole or in part unless the donor expressly manifested an intent that the power not be releasable. A release is irrevocable unless the donee reserved the right to revoke or amend it.
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The contract is enforceable unless the contract or the promised appointment confers a benefit on an impermissible appointee outside the defined class.
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Property subject to a nongeneral power is exempt from claims of the donee's creditors and from administration expenses of the donee's estate because the power is not an ownership equivalent.
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Yes. When a permissible appointee who was alive at creation of the power later dies before exercise, the donee may appoint to that appointee's descendants unless the donor expressly prohibited the result.
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