Classification of Powers of Appointment

Several Subcategories of Power

Though all powers of appointment share their discretionary character, several subcategories of power can be identified, which are identified by the nature of the class of potential objects and by the exact duties of the donee.

Classification by the nature of the class of objects

There are three types of powers of appointment: general, special and hybrid powers. They are differentiated by the range of potential objects in whose favour the power may be exercised:

  • General Powers

Under a general power of appointment the donee enjoys the right to allocate the property by appointment to anyone he wishes. The donee may even appoint the property to himself. This extremely wide power is tantamount to absolute ownership by the donee.

  • Special Powers

Where the donor of a power has specified that it should only be exercised in favour of a class of people, it is said to be a special power.

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For more information on:

  • Hybrid Powers
  • Classification by donee’s duties
  • Bare or mere powers
  • Fiduciary powers