Written by attorneys · grounded in primary & secondary sources — see below
A person upon whom a power of appointment has been conferred or in whom the power has been reserved. If the creator of the power retains it for personal exercise, that creator also qualifies as the powerholder.
Sources & Authorities
How it applies
Common Examples
2
Reserved Power in Trust Instrument
Phoebe Park transferred rental properties into an irrevocable trust and included a clause naming herself as one who could select future income recipients among research hospitals. The clause listed Phoebe alongside an advisory board but did not exclude her. Phoebe later claimed sole authority to direct distributions. Because Phoebe created the trust and the instrument expressly identified her as a decision maker, she qualifies as the powerholder under the governing definition.
Advisor Granted Appointment Authority
Preston Pratt created an irrevocable trust holding securities and named a trustee to manage the assets. The instrument separately granted Preston's financial advisor, Penelope Price, acting only in an advisory capacity, sole discretion to allocate future income among distant cousins. Penelope holds no beneficial interest and receives no compensation. Penelope qualifies as the powerholder because the instrument conferred the appointment authority on her in a non-trustee capacity.
Put it into practice
Test Yourself
10
Practice Questions5
· 3 primary sources
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Restatements
Casebooks
Course Outlines
Study Supplements
Hornung v. Stockall296 Neb. 565, 894 N.W.2d 810
Common questions
Frequently Asked
4
How does the powerholder differ from the donor of a power of appointment?+
The donor creates or reserves the power. The powerholder is the person on whom the power is conferred or in whom it is reserved. When the donor retains the power for personal exercise, the donor also becomes the powerholder.
Supporting sources
Can a person who never receives trust distributions still qualify as a powerholder?+
Yes. Trust law treats a person who holds a power of appointment in a non-trustee capacity as a beneficiary even when that person has no right to receive income or principal. The classification turns on the conferral of appointment authority rather than personal benefit.
Supporting sources
What happens when the instrument names both the creator and a third party as possible decision makers?+
The creator remains a powerholder if the instrument confers or reserves authority in that person. Sharing authority with another decision maker does not remove the creator's status when the creating document expressly identifies the creator as a permissible actor.
Supporting sources
Does a powerholder's status require exclusive authority over appointments?+
No. The definition focuses on whether the power was conferred on or reserved in the individual. Parallel grants to others do not negate the powerholder's status when the instrument names that individual as a decision maker.
Supporting sources
Trusts and Estates Trusts and Future InterestsFuture interests · Classification of reversions, remainders, and executory interestsUBEFoundational