Define: General Power Of Appointment

A general power of appointment is a legal authority granted to an individual, known as the donee or holder of the power, to designate beneficiaries who will receive property or assets from a trust, estate, or other entity. Unlike a limited or special power of appointment, which restricts the donee’s authority to specific beneficiaries or circumstances, a general power of appointment allows the donee to appoint the property to anyone, including themselves, their creditors, their estate, or their estate’s creditors. The donee of a general power of appointment typically has broad discretion in selecting beneficiaries and determining the terms of distribution. General powers of appointment are often used in estate planning to provide flexibility and tax advantages in transferring wealth to future generations while allowing the donee to retain control over the disposition of assets.

A power of appointment that can be exercised for the benefit of anyone, including the power-holder himself. Technically, a power to appoint to anyone, but only in one’s will, is a general power — although, naturally, the power-holder can’t appoint to himself in this case.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.