Legal Definitions - Presently exercisable power of appointment

A presently exercisable power of appointment is a type of power of appointment that the person who received it can use during their lifetime. This is different from a testamentary power of appointment, which can only be used after the person's death.

For example, if a wealthy person sets up a trust for their children and gives them a presently exercisable power of appointment, the children can use the money in the trust for their own benefit while they are alive. They could use the money to buy a house, start a business, or pay for their children's education. However, if the person had given them a testamentary power of appointment, the children would have to wait until the person's death to access the money.

Another example of a presently exercisable power of appointment is when a person creates a will and gives their executor the power to distribute their assets to their heirs. The executor can use this power during the probate process to make sure that the person's wishes are carried out.