Also known as: general presently exercisable · presently exercisable general power
Written by attorneys · grounded in primary & secondary sources — see below
A power of appointment under which the donee may currently appoint property to herself, her creditors, her estate, or the creditors of her estate. The power is presently exercisable when the donee holds authority to act immediately rather than only at death. It qualifies as a power of withdrawal unless the holder acts as trustee under an ascertainable standard or must obtain consent from a trustee or adverse party.
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Gina Griffin holds a presently exercisable general power over trust assets. She signs a contract promising to appoint the assets to a named charity. When Gina later refuses to exercise the power, the charity sues to enforce the contract. The court orders specific performance because the power is presently exercisable and general.
Greta Goldstein is beneficiary of a trust that lets her demand the entire principal at any time by written notice. A judgment creditor seeks to reach the trust assets. Because Greta may appoint the property to herself without trustee consent or an ascertainable standard, her right constitutes a power of withdrawal reachable by the creditor.
A beneficiary's right qualifies when it is a presently exercisable general power of appointment that is not held by a trustee under an ascertainable standard and is not conditioned on consent from a trustee or adverse party. The trust instrument's grant of unilateral authority to demand principal determines the classification.
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Yes. The definition excludes any power exercisable only upon consent of a trustee or a person holding an adverse interest. A remainder beneficiary's economic stake in preserving the corpus makes the consent requirement disqualifying even when the same person serves as co-trustee.
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No. The definition expressly excludes powers exercisable by a trustee and limited by an ascertainable standard such as health, education, support, or maintenance. Only non-trustee powers free of those limits qualify.
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Such a power is treated as the practical equivalent of ownership because the holder can appoint the property to herself or her creditors at any time. Elective-share and creditor rules therefore include the appointive property in the power holder's estate or reachable assets.
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