Wills and Trusts

Wyatt, Tarrant & Combs, LLP

General Powers of Appointment – New Uniform Law

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The Uniform Law Commission has drafted a new Uniform Powers of Appointment Act. The text is available at http://www.uniformlaws.org.
Suppose I have a power to appoint the assets of a trust created by my mother worth $1,000,000, to the creditors of my estate. I have lunch with Fred and have forgotten my wallet. He pays and, loudly, we agree that I owe him lunch. I appoint by Will the maximum amount I can to Fred, and promptly die. Is Fred a creditor, so he gets $1,000,000? Or, once he receives $10 does he lose creditor status?
Suppose Fred has a power to appoint assets to his spouse and descendants under his father’s trust administered under the law of a state that does not recognize same sex marriage. Fred lives in a state that does recognize same sex marriage and is marred to Sam. May Fred appoint to Sam?

Turney P. Berry
Louisville, Kentucky

Author: robmalinesq

I am an estate planning and probate attorney in Memphis, Tennessee.

Leave a reply. Please note that although this blog may be helpful in informing clients and others who have an interest in information privacy and security, it is not intended to be legal advice. The information on this blog also should not be relied upon to form an attorney-client relationship.

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