Special Power of Appointment Template

What Is the Special Power of Appointment?

A special power of appointment is a right granted to you (the powerholder) to determine who receives trust property, subject to restrictions that prevent the property from being included in your taxable estate. Unlike a general power where you can appoint to anyone including yourself, a special power limits your choices to a defined class of permissible appointees such as your descendants or any person except you and your estate.

This document formalizes your exercise of that power, specifying exactly who receives the appointive property, whether they receive it outright or in continuing trust, and how any continuing trusts should be administered. Without a properly executed power of appointment document, the trust property will be distributed according to default provisions in the trust instrument, which might not reflect your wishes or current family circumstances. The special power of appointment gives you flexibility to adapt the trust's distribution plan to changed circumstances, tax laws, or beneficiary needs without requiring court approval or trust amendments.

 

 

Is This Special Power of Appointment Right for You?

You need this document if you're:

• A beneficiary with appointment power under a family trust
• Managing trust property for children or grandchildren
• Planning distributions from an irrevocable trust
• Redirecting trust assets due to changed circumstances
• Exercising testamentary powers in your estate plan
• Creating continuing trusts for the next generation

You definitely need this document if:

• You want trust property distributed differently than the default terms
• A beneficiary's circumstances have changed significantly since trust creation
• You need to optimize generation-skipping transfer tax planning
• The trust's default distribution doesn't match current family needs
• You want to add creditor protection for specific beneficiaries

 

 

Why Thousands Trust Legal GPS Templates

Save Money. Estate planning attorneys charge $1,500-$4,000 to draft power of appointment exercises. Our template costs $35.

Save Time. Download instantly and complete in under two hours with our comprehensive guide.

Look Professional. Attorney-drafted provisions that trustees, financial institutions, and courts recognize as valid.

Keeps You Out of Court. Our Appointment of Property article provides three distribution structures, the Terms of Continuing Trusts article includes asset protection provisions, the Tax Elections and Allocations article optimizes generation-skipping transfer tax, and the Execution and Formalities article ensures legal validity across all jurisdictions.

 

 

 

Get Protected in 3 Simple Steps

Step 1: Secure Checkout. Complete your purchase through our encrypted payment system.

Step 2: Instant Download. Receive your template immediately via email in Word and PDF formats.

Step 3: Fill In the Highlighted Fields. Follow our detailed how-to guide to exercise your power of appointment properly.

 

Frequently Asked Questions

Can I use this template multiple times?

Yes. Once you purchase this special power of appointment template, you can use it whenever you need to exercise appointment powers under different trusts.

Is this document legally binding?

Yes. This template contains the provisions estate planning attorneys use to exercise powers of appointment. When properly executed according to your trust's requirements, this document is legally binding and enforceable.

What's the difference between a special and general power of appointment?

A general power lets you appoint property to anyone including yourself, your estate, or your creditors. A special power restricts who you can appoint to (typically anyone except you and your estate). This distinction is critical for tax purposes—general powers cause trust property to be included in your taxable estate while special powers generally do not.

When should I exercise my power of appointment?

Exercise it when the trust's default distribution doesn't match current circumstances, when you want to add asset protection for specific beneficiaries, when tax laws have changed since the trust was created, or when beneficiaries' needs have evolved. Many people exercise testamentary powers as part of comprehensive estate planning.

Can I change my mind after exercising the power?

It depends on whether you made a lifetime or testamentary exercise. Testamentary exercises (effective at death) can typically be revoked or modified anytime before death. Lifetime exercises (effective immediately) may be irrevocable depending on your trust's terms. The template includes options for both approaches.

Do I need to notify anyone when I exercise this power?

Yes. You should provide a copy to the trustee, and the trustee should notify beneficiaries who would have received property under the default distribution. The template includes provisions requiring these notifications. Some trusts specify additional notice requirements you must follow.