Legal Definitions - object of a power

The object of a power refers to the specific individual or group of individuals who are legally eligible to receive a benefit or appointment under a legal power. This power is typically granted by one person (the donor) to another (the donee or holder of the power), allowing the donee to decide how certain property or assets will be distributed among a defined class of people. The "objects" are the potential recipients from whom the donee can choose; the donee cannot appoint anyone outside this specified group.

• Example 1: A Testamentary Power of Appointment

  A will states, "I grant my spouse the power to distribute my antique coin collection among any of our children or grandchildren as she deems appropriate." In this scenario, the "power" is the spouse's authority to decide who receives the coin collection. The objects of the power are all the testator's children and grandchildren. The spouse must choose recipients exclusively from this defined group and cannot, for instance, give the collection to a friend or a niece who is not a child or grandchild of the testator.

• Example 2: A Discretionary Trust for Employees

  A company establishes a trust fund to provide financial assistance for employees facing unforeseen hardship. The trust document specifies that the trustee has the discretion to distribute funds to "any current employee of the company or their immediate family members." Here, the "power" is the trustee's discretion to allocate financial aid. The objects of the power are all current employees of the company and their immediate family members. The trustee is legally bound to only distribute funds to individuals within this specific class of beneficiaries.

• Example 3: A Settlement with a Limited Power

  A wealthy individual creates a family settlement, granting their eldest child the power to allocate a specific parcel of land to "any of my nieces or nephews who pursue a career in agriculture." The "power" is the eldest child's authority to transfer the land. The objects of the power are all the settlor's nieces and nephews who meet the condition of pursuing an agricultural career. The eldest child must select a recipient from this group and cannot give the land to a sibling or a niece who is an accountant.