Legal Definitions - testamentary power

Testamentary power, specifically referring to a "testamentary power of appointment," is a legal authority granted by one person (the "donor") to another individual (the "holder" or "donee") through the donor's will. This power allows the holder to decide, within certain specified limits, who will receive particular assets or property *after the donor has passed away*.

The crucial aspect of a testamentary power is that it must be exercised by the holder through a specific provision in their own will. It's a way for a property owner to allow someone else to make final decisions about who gets their property, but only after the original owner's death and only through the recipient's will.

• Example 1: Distributing a Family Trust

  Eleanor's will establishes a trust for the benefit of her grandchildren. She names her son, David, as the trustee and grants him a testamentary power of appointment over the remaining trust funds. This means that after Eleanor's death, David, in his own will, can decide how to distribute the remaining trust assets among his children (Eleanor's grandchildren) according to his discretion, as long as he stays within the guidelines Eleanor set in her will.

  Explanation: Eleanor (the donor) uses her will to give David (the holder) the power to appoint beneficiaries. David must then use his own will to exercise this power, designating which of his children will receive the funds. The power itself is "testamentary" because it is both granted by a will and must be exercised through a will.

• Example 2: Choosing an Heir for a Unique Collection

  A renowned art collector, Mr. Chen, leaves his valuable antique porcelain collection to his daughter, Mei, in his will. However, he includes a clause granting Mei a testamentary power of appointment, allowing her to choose, in her own will, which of her two children will ultimately inherit the collection upon her death. Mr. Chen trusts Mei's judgment to select the child who would best appreciate and care for the pieces.

  Explanation: Mr. Chen (the donor) empowers Mei (the holder) through his will to make a future decision about the collection's ultimate recipient. Mei will then exercise this power in *her* will, naming one of her children as the beneficiary. This demonstrates the power being granted and exercised through wills, taking effect after the donor's passing.

• Example 3: Allocating Charitable Donations

  A wealthy philanthropist, Dr. Anya Sharma, establishes a substantial endowment in her will dedicated to medical research. She grants her long-time friend and fellow scientist, Dr. Ben Carter, a testamentary power of appointment. This allows Dr. Carter, in his own will, to designate which specific medical research institutions or charities will receive portions of the endowment after Dr. Sharma's death, provided they meet certain criteria she outlined, such as focusing on rare diseases.

  Explanation: Dr. Sharma (the donor) uses her will to give Dr. Carter (the holder) the authority to name specific charitable beneficiaries. Dr. Carter will then, in *his* will, make those designations. This illustrates how a testamentary power enables a donor to delegate future decisions about property distribution, ensuring the holder's personal knowledge or judgment can guide the final allocation.