Wills and Trusts

Wyatt, Tarrant & Combs, LLP

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General Powers of Appointment – New Uniform Law

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