General Power of Appointment
A general power of appointment allows the holder to direct property distribution to anyone, including themselves. Because of this unrestricted authority, property subject to the power is included in the holder's taxable estate under IRC §2041.
Key Characteristics
- Holder can appoint property to themselves, their estate, or creditors
- Property included in holder's gross estate for federal estate tax
- Inclusion applies whether the power is exercised or not
- Can significantly increase taxable estate
General vs. Limited Power
- General: Appoint to anyone including self; causes estate inclusion
- Limited (special): Appoint only to specific class; no estate inclusion
- Modern trusts typically use limited powers for tax efficiency
Florida Estate Planning
Florida has no state estate tax, so the federal impact is the primary concern. Most estate plans use limited powers to provide flexibility without triggering the $13.61M federal exemption threshold.
Related Terms
- Estate Planning — Powers in trust planning
- Equity — Property value subject to the power
- Evidence of Title — Title affected by power exercise
Barnes Walker Estate Planning
Barnes Walker's attorneys draft powers of appointment in Florida estate plans, balancing flexibility with tax efficiency. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC