The difference between a general power of appointment and a special power of app
ID: 2677637 • Letter: T
Question
The difference between a general power of appointment and a special power of appointment is:Choose one answer.
a. A general power of appointment is given in a will; a special power of appointment is given in a trust.
b. A special power of appointment is limited by the ascertainable standard; the general power is not limited by the ascertainable standard
c. A special power of appointment is not affected by the 5/5 power limitation; a lapse of a general power of appointment is limited by the 5/5 power
d. There is no difference between a special and a general power of appointment.
Explanation / Answer
Correct answer: b. A special power of appointment is limited by the ascertainable standard; the general power is not limited by the ascertainable standard Explanation: A special power of appointment is limited, and does not include the holder of the power of appointment as a beneficiary. It is less likely that this type of power is includable in the estate of the holder of the power of appointment.