Also known as: objects of the power of appointment · appointee
Written by attorneys · grounded in primary & secondary sources — see below
A person or class of persons to whom the donee of a power of appointment is authorized to appoint the appointive property. The donor designates the objects when creating the power, and an appointment is effective only when made to a person within that class.
Oskar Ocampo held a nongeneral power to appoint trust assets only among his children. He executed an instrument appointing the assets to his daughter Orla on the condition that she first pay a sum to his creditor, who was not a permissible appointee. The appointment is ineffective to the extent it benefits the creditor because the condition shows the appointment was motivated to confer a benefit on an impermissible appointee.
Orson Ochoa received a power to appoint shares only among his siblings. He directed the trustee to transfer shares to his business partner, who fell outside the sibling class. The partner is not an object of the power, so the appointment fails and the shares pass to the takers in default.
Select any source to read its text and confirm it supports the definition.
Odilia Okamura held a power to appoint among her descendants. She appointed the assets to her granddaughter, who qualified as a descendant. The granddaughter is an object of the power, making the appointment fully effective and binding the trustee to transfer the property.
Oscar Ortiz created a power allowing appointment only to his nieces and nephews. The donee appointed assets to a permissible niece but required her to hold them in trust for an unrelated friend. The trust arrangement renders the appointment ineffective because it benefits an impermissible appointee.
Oliver Okeke held a power limited to his children. He appointed assets directly to a bank that held his personal debt, claiming the bank was a permissible appointee. The bank is not an object of the power, so the appointment is invalid and the assets remain subject to the default provisions.
Orla O'Malley was named as an object of her uncle's power of appointment. She filed a written disclaimer refusing any interest under the power. The disclaimer prevents her from receiving the property even though she qualifies as an object, allowing the assets to pass as though she had never been designated.
An object is a person the donee is authorized to appoint, while a taker in default receives the property only if the power is not effectively exercised. The donor designates both groups in the creating instrument.
An appointment to a permissible object becomes ineffective if it is conditioned on conferring a benefit on an impermissible appointee, placed in trust for such a person, or otherwise motivated to benefit someone outside the class.
An appointment to a permissible object who is the donee's creditor is valid only if the appointment is not primarily for the creditor's benefit. If the dominant purpose is to satisfy the debt, the appointment fails as to that extent.
An appointment to a person who is not an object is ineffective. The property passes instead to the takers in default of appointment or under the governing instrument's default provisions.
…in United States v. Germaine, supra , is a term intended to have substantive meaning. We think its fair import is that any appointee exercising significant authority pursuant to the laws of the United States is an "Officer of the United States," and must, therefore, be appointed in the manner prescribed by § 2, cl. 2, of…