Legal Definitions - Special Power of Appointment

A special power of appointment is a legal term that refers to a power given to someone (the "donee") to distribute the assets of a deceased person (the "decedent") to a specific group of people. However, the donee cannot give the assets to themselves, their estate, their creditors, or the creditors of their estate.

For example, if the donee has the power to choose which of the decedent's children will receive the assets, that is a special power of appointment. The donee cannot choose themselves or their own estate as the recipient of the assets.

Another example of a special power of appointment is if the donee has the power to choose between the decedent's siblings or nieces and nephews. In this case, the donee cannot choose their own children or grandchildren as the recipients of the assets.

These examples illustrate how a special power of appointment works by limiting the donee's ability to distribute the assets to a specific group of people, while also preventing them from benefiting themselves or their own estate.