Legal Definitions - donee of power

A donee of power is an individual who has been legally granted the authority to decide who will receive certain property belonging to another person. This authority, often referred to as a "power of appointment," allows the donee to direct the distribution of assets that are not their own, typically within specific guidelines or parameters set by the original property owner.

Here are some examples illustrating the role of a donee of power:

• Example 1: Estate Planning with a Will

  A woman's will states that upon her death, her extensive collection of antique books should be distributed among her nieces and nephews. However, instead of listing specific books for each person, she grants her sister, who is also an avid reader, the power to decide which books go to which niece or nephew, based on their interests and her sister's knowledge of the collection. In this scenario, the sister is the donee of power because she has been given the authority to appoint or designate the recipients of the books, even though the books belong to her deceased sister's estate.

• Example 2: Trust Administration

  A wealthy philanthropist establishes a trust fund to support various educational initiatives. The trust document names a university dean as the trustee and grants the dean the power to allocate a portion of the trust's annual income to specific scholarship programs or research projects that align with the trust's mission. The dean has the discretion to choose which programs receive funding each year. Here, the university dean acts as the donee of power. Although the dean does not own the trust assets, they have been legally empowered by the philanthropist to decide how those assets (the annual income) will be distributed among eligible beneficiaries or projects.

• Example 3: Specific Property Distribution

  An elderly artist, wanting to ensure her unique sculptures find appropriate homes after her passing, creates a legal document. This document states that her close friend, a respected art curator, will have the final authority to decide which museums or galleries will receive specific pieces from her collection. The artist trusts her friend's judgment to place the art where it will be best appreciated and preserved. The art curator is the donee of power because they have been granted the specific authority to appoint the ultimate recipients of the artist's sculptures, even though they do not own the artwork themselves.