Legal Definitions - object of the power of appointment

The object of the power of appointment refers to the specific group of individuals or entities from whom the person holding a "power of appointment" is legally permitted to select when distributing property or assets.

In simpler terms, when someone is given the authority to decide who will receive certain property (this authority is the "power of appointment"), the "object" defines the boundaries of that choice. It's the designated pool of potential beneficiaries that the original owner of the property specified.

Here are some examples to illustrate this concept:

• Example 1: Family Trust Distribution

  A wealthy individual, Mr. Chen, creates a trust for his family. In his will, he grants his daughter, Lisa, a "power of appointment" over a portion of the trust's assets. He specifies that Lisa can distribute these assets among any of her own children as she sees fit. In this scenario, "any of her own children" are the objects of the power of appointment. Lisa cannot choose to give the assets to her friends, her siblings, or a charity; her choices are limited to her direct descendants as specified by Mr. Chen.

• Example 2: Charitable Foundation Grants

  A philanthropic donor establishes a foundation and appoints a board of trustees. The donor gives the board a "power of appointment" to distribute annual grants to any registered non-profit organization dedicated to promoting literacy or providing educational support to underserved communities. Here, the objects of the power of appointment are "any registered non-profit organization dedicated to promoting literacy or providing educational support to underserved communities." The board must select recipients that fall within this defined category and cannot, for instance, grant funds to an animal shelter or a political campaign.

• Example 3: Estate Planning for Heirlooms

  Before her passing, Ms. Rodriguez drafts her will, leaving a collection of antique jewelry. She grants her niece, Sofia, a "power of appointment" to decide which of the jewelry pieces will go to Sofia's cousins (Ms. Rodriguez's grandnieces and grandnephews) or to a specific historical museum. The objects of the power of appointment are "Sofia's cousins or a specific historical museum." Sofia has the discretion to distribute the jewelry among these specific individuals or the museum, but she cannot give them to her own children, her friends, or any other entity outside of the defined group.