Also known as: special power of appointment · nongeneral power of appointment · special power · limited power of appointment
Written by attorneys · grounded in primary & secondary sources — see below
A power of appointment that cannot be exercised in favor of the donee, the donee's estate, the donee's creditors, or the creditors of the donee's estate.
Sylvia Santos holds a nongeneral power to appoint trust assets among her siblings. She executes a written release surrendering her ability to appoint to her own estate while retaining the power to appoint among the siblings. The release prevents any later attempt by her will to direct assets to her estate.
Santiago Sanchez holds a presently exercisable nongeneral power to appoint among his children. He contracts with one child to appoint a specific sum in exchange for services. The contract is enforceable because the promised appointment stays within the permitted class of objects.
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Simone Sanders holds a nongeneral power over a trust created by her parent. After she incurs large debts, her creditors attempt to reach the appointive property to satisfy judgments. The property remains exempt from their claims because the power does not allow appointment to her creditors.
Spencer Silver receives a nongeneral power to appoint among his parent's descendants. He attempts to direct assets outside that class. The attempted appointment fails and the property passes to the takers in default.
Sierra Santos holds a nongeneral power created under state law. A dispute arises over whether a particular exercise conforms to the donor's restrictions. The federal court applies the state rule to decide the validity of the appointment.
A nongeneral power cannot be exercised in favor of the donee, the donee's estate, the donee's creditors, or creditors of the donee's estate, whereas a general power permits such appointments.
The donee may release the power in whole or in part unless the donor expressly manifested an intent that the power not be releasable.
Property subject to a nongeneral power is exempt from claims of the donee's creditors and from liability for expenses of administering the donee's estate.
A contract to exercise a presently exercisable nongeneral power is enforceable unless the contract or the promised appointment confers a benefit upon an impermissible appointee.
Divorce revokes any provision in a governing instrument conferring a nongeneral power of appointment on the divorced individual's former spouse or on a relative of the former spouse.
…revoke any disposition or appointment of property made by the will to the former spouse, any provision conferring a general or special power of appointment on the former spouse, and any nomination of the former spouse, as executor, trustee, conservator or guardian, unless the will shall expressly provide otherwise. Property prevented from…