Legal Definitions - Objects of the Power

In legal terms, the Objects of the Power refers to the specific group of individuals or entities from whom a designated person, holding a special authority called a power of appointment, is permitted to select beneficiaries to receive assets or benefits. Essentially, it defines the limited pool of eligible recipients from which the selection must be made.

Here are some examples to illustrate this concept:

• Example 1: A Family Trust
  A wealthy individual, Mr. Henderson, creates a trust in his will. He specifies that his daughter, Sarah, will act as the trustee (the power-holder) and has the authority to distribute a portion of the trust's assets among "any of Mr. Henderson's nieces and nephews." In this scenario, the objects of the power are all of Mr. Henderson's nieces and nephews. Sarah can choose to give money to one, some, or all of them, but she cannot give any of that specific portion of the trust to someone outside this defined group, such as her own children or a friend.
• Example 2: A Charitable Foundation
  A philanthropic donor establishes a foundation and grants its board of directors (the power-holder) the authority to allocate annual grants to "any registered non-profit organization operating within the city of Boston that focuses on youth education or homelessness prevention." Here, the objects of the power are all registered non-profit organizations in Boston dedicated to youth education or homelessness prevention. The board has the discretion to choose which specific organizations receive grants each year, but their choices must fall within this defined category and geographic area.
• Example 3: Life Insurance Beneficiary Designation
  A person sets up a life insurance policy and names their spouse as the primary beneficiary. However, they also include a clause stating that if the spouse predeceases them, their executor (the power-holder) has the discretion to distribute the policy proceeds among "the policyholder's surviving biological children." In this case, the objects of the power are the policyholder's surviving biological children. The executor can decide how to divide the proceeds among these children, but cannot give any part of it to, for instance, a stepchild or a grandchild, as they are not part of the specified group.