Legal Definitions - Illusory Appointment Act

The Illusory Appointment Act is an English statute designed to prevent certain distributions of property from being declared invalid simply because one beneficiary received a very small or seemingly insignificant share. In legal terms, when someone has the power to "appoint" (distribute) property among a group of people, and they give one person a tiny portion, this small portion might be considered "illusory"—meaning it's so small it's almost like they received nothing.

This Act ensures that such an appointment, even if minimal, is still legally valid and cannot be challenged solely on the grounds that it appears unfair or insignificant. Originally enacted in 1839, this statute was later repealed and reissued in 1925 as part of the broader Law of Property Act, solidifying its principle within English law.

Here are some examples to illustrate how the Illusory Appointment Act works:

• Example 1: Unequal Shares in a Will

  Imagine a wealthy individual who creates a will, granting their executor the power to distribute a significant estate, worth £5 million, among their three adult children: Sarah, Tom, and Olivia. The will specifies that each child must receive some share. The executor decides to give Sarah £2,499,999, Tom £2,499,999, and Olivia £2. Olivia might feel that her £2 share is "illusory" because it's so tiny compared to the total estate and her siblings' portions, and she might try to challenge the will's distribution.

  The Illusory Appointment Act would prevent a court from overturning this distribution. As long as Olivia received an actual, albeit nominal, amount of property from the estate, the appointment is considered valid, and the executor's distribution stands.

• Example 2: Trust Fund Beneficiaries

  Consider a trust fund established with £1 million for the benefit of a group of distant relatives, with the trustee having the discretion to decide the exact distribution among them. The trust deed requires that all named relatives receive a share. The trustee distributes £499,999 to Relative A, £499,999 to Relative B, and £2 to Relative C.

  Relative C could argue that their £2 share is "illusory" and challenge the trustee's decision, claiming it doesn't fulfill the spirit of the trust. However, the Illusory Appointment Act would protect the trustee's distribution, ensuring it remains valid because Relative C did receive a tangible, even if minimal, share of the trust property.

• Example 3: Distribution of Specific Assets

  Suppose a legal settlement grants a spouse the power to distribute a collection of valuable antique paintings and a single, inexpensive, mass-produced ceramic vase among their two children, Liam and Maya. The spouse decides to give all the valuable antique paintings to Liam and the single ceramic vase to Maya.

  Maya might argue that receiving only an inexpensive ceramic vase, while technically an "appointment" of property, is an "illusory" share compared to the valuable paintings Liam received. The Illusory Appointment Act would prevent a court from invalidating the spouse's distribution on the basis that Maya's share was too insignificant or of negligible value. As long as she received *some* property from the pool designated for distribution, the appointment is legally upheld.