Power of Appointment

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Gives a person (usually a beneficiary) the ability to choose the recipients of property upon termination of a trust or other specified circumstances. The person given the power is usually referred to as a “holder” of the power. The power of appointment may be general, allowing the property to be distributed to anyone, including the holder, or limited, allowing the property to be distributed to a specified group. Property subject to a general power of appointment is includible in the holder’s gross estate for federal estate tax purposes.

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