How a Power of Appointment Can Affect the Rights of Potential Trust Beneficiaries
When making a Will or Trust, a person may sometimes grant someone else a “power of appointment.” This is basically the authority to decide how to dispose of particular property. Let’s take a simple example. Say you have a large collection of vinyl records. You cannot decide who to leave them to, as you have many friends and relatives who might be interested in possessing certain albums. Rather than decide yourself, you include language in your Will directing your sister to distribute the record collection “as she sees fit.” You thus have granted your sister the power of appointment over your record collection.
Now to take a more complex situation, let’s say you have created a Revocable Trust as part of your estate plan. You set aside a share of the trust–perhaps $100,000–and instruct the Trustee to make monthly payments from that share of $1,000 to your sister. You then authorize your sister to include language in her own Will, specifying who should get the remainder of the $100,000 if she dies before receiving all of the money. This is what is known as a testamentary power of attorney.
Speak with a Florida Trust Beneficiary Dispute Attorney Today
Trust litigation often raises complex questions regarding the rights and standing of various parties. An experienced Pompano Beach beneficiary dispute attorney can help you sort out such legal issues. Contact the offices of Mark R. Manceri, P.A., today to schedule a consultation.