Also known as: presently-exercisable power · power of appointment · exercisable power
Written by attorneys · grounded in primary & secondary sources — see below
A power of appointment that its holder may exercise at the moment in question, whether by inter vivos instrument or will.
Priscilla Parks holds the sole lifetime interest in a family trust holding startup shares. The instrument lets her demand the entire principal in writing at any time. A judgment creditor seeks to reach the shares. Priscilla's unilateral right qualifies as presently exercisable, allowing the creditor to treat the assets as reachable.
Paula Pierce serves as beneficiary of an irrevocable trust. The terms authorize her, outside any trustee role, to appoint trust assets among designated relatives. She executes a deed directing distribution. Her authority operates as a presently exercisable power because she may act immediately in her personal capacity.
Select any source to read its text and confirm it supports the definition.
Priya Prasad receives authority under a trust to redirect profit interests among named parties. She delivers a signed writing to the trustee allocating shares during her lifetime. The allocation takes effect at once because the power permits immediate exercise.
Pablo Perez holds authority to appoint trust property only after a stated future event occurs. Until the condition is met he cannot direct any distribution. The power remains postponed and is not presently exercisable.
Parker Phillips may withdraw parcels from a trust only with written approval from a remainder beneficiary who also serves as co-trustee. The consent condition prevents unilateral action. The right therefore does not qualify as presently exercisable.
Patricia Patel receives authority to appoint trust assets solely through provisions in her will. She attempts an inter vivos deed directing distribution. The deed has no effect because the power may be exercised only at death.
A presently exercisable power may be exercised by the holder at the time in question through either an inter vivos instrument or a will. A testamentary power may be exercised only by will at the holder's death.
The right qualifies when it constitutes a presently exercisable general power of appointment that the beneficiary may exercise unilaterally without trustee consent or an ascertainable standard. The Uniform Trust Code excludes powers held by a trustee and limited by such a standard or powers requiring consent of an adverse party.
Yes. The Uniform Trust Code expressly excludes from the definition of power of withdrawal any power exercisable only with the consent of a trustee or a person holding an adverse interest. The adverse party's economic stake renders the power non-exercisable in the required sense.
Yes. Even when held by a beneficiary rather than a trustee, the power is excluded if it may be exercised only upon consent of an adverse-interest holder. The statute focuses on the consent condition and adverse stake, not on the holder's title.
…was entitled to reach the principal at his request or in the trustee’s discretion. The trust instrument also gave Mayo a general power of appointment over the assets in Trust A. The balance of the decedent’s estate, excluding personal property passing to Mayo by will, or the entire estate if Mayo did not survive her, composed Trust B.…