Also known as: non-general power of appointment · nongeneral powers of appointment · special power of appointment · limited power of appointment
Written by attorneys · grounded in primary & secondary sources — see below
A power of appointment that the donee may exercise only in favor of persons other than the donee, the donee's estate, or the creditors of either.
Neil Nair holds a nongeneral power to appoint trust assets only among his siblings. Neil executes a release surrendering his right to appoint the assets to his own descendants. The release prevents Neil from later directing any portion of the assets to his descendants even though he remains able to appoint among his siblings.
Naveen Nanda holds a presently exercisable nongeneral power to appoint trust income only among his children. Naveen contracts with his daughter Nancy to appoint the income to her in exchange for her promise to care for him. The contract is enforceable because the promised appointment stays within the permissible class of children.
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Nancy Nelson holds a nongeneral power to appoint trust principal only among her nieces. After Nancy incurs substantial personal debts, her creditors attempt to reach the trust assets to satisfy the judgments. The assets remain protected because the power cannot be exercised for Nancy's own benefit or for her creditors.
Nathaniel Newman holds a nongeneral power created under state law. After his death, federal tax authorities challenge the characterization of the power in the estate proceeding. The federal court applies the state court's determination of the power's nongeneral status to resolve the tax dispute.
A nongeneral power limits the donee to appointing only among persons other than the donee, the donee's estate, or the creditors of either. A general power allows appointment to those four targets. The distinction controls whether creditors can reach the appointive property and whether the power is treated as equivalent to ownership.
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The donee may release the power in whole or in part unless the donor expressly manifested an intent that the power not be releasable. A release is irrevocable unless the donee reserved a power to revoke or amend it.
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A contract to exercise a presently exercisable nongeneral power is enforceable provided the contract and the promised appointment do not benefit an impermissible appointee.
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Property subject to a nongeneral power is exempt from claims of the donee's creditors and from the expenses of administering the donee's estate.
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…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…