Power Of Appointment

In general, authority given by one person (donee) to another to decide who will be the beneficiary of an estate or trust assets upon the death of the donee. A power of appointment may be created by a will, a trust instrument, or as a part of a power of attorney, and is of two types: (1) General power of appointment is exercisable in favor of anyone, including the donee and his or her estate or its creditors, and (2) Special or limited power of appointment is exercisable only in favor the entities designated in the instrument creating the power.