Also known as: general power
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A broad authority to appoint or direct property to any person including the holder or the holder's creditors. The authority is presently exercisable unless limited by an ascertainable standard or requiring consent of an adverse party.
A broad authority to appoint or direct property to any person including the holder or the holder's creditors. The authority is presently exercisable unless limited by an ascertainable standard or requiring consent of an adverse party.
Gina Griffin holds a trust interest allowing annual withdrawals of principal for any purpose. She submits a written request to the trustee. The trustee refuses consent because its compensation depends on preserving capital. Gina cannot force the withdrawal because the consent requirement creates an adverse-interest limitation.
Authority granted by a declaration to adopt reasonable rules governing use of common property and individually owned units. The rules protect community members from interference and address leasing restrictions required by lenders.
Grandview Holdings manages a condominium whose declaration grants general rulemaking power. The board adopts a rule capping short-term rentals to satisfy lender underwriting standards. Owners challenge the rule as exceeding authority. The rule is valid because it directly addresses valid lender requirements under the granted power.
Authority granted by a declaration to adopt reasonable rules governing use of common property and individually owned units. The rules protect community members from interference and address leasing restrictions required by lenders.
Each sense below has its own examples, sources, and questions.
A general power permits appointment to the holder or the holder's creditors. A limited power restricts appointees to a defined class and excludes the holder and creditors. The distinction controls whether the power triggers inclusion in the holder's estate for creditor claims.
Consent prevents qualification when the consenting party holds an adverse interest such as compensation tied to preserving trust capital. The adverse-interest exception removes the power from the definition of a power of withdrawal under the Uniform Trust Code.
Rules must be reasonable and designed to protect members from interference or to meet lender underwriting requirements. The declaration's grant of general power supplies the source of authority for such rules.