New York Estates, Powers and Trusts Law (EPTL) Β§ 6-5.2 addresses the impact of an unexecuted power of appointment on the vesting of a future estate.
Text of the Statute
Β§ 6-5.2. Power of appointment not to prevent vesting
The existence of an unexecuted power of appointment does not prevent the vesting of a future estate, limited in default of the execution of the power.
Understanding the Key Terms
Hereβs a breakdown of its meaning:
- Power of Appointment: A legal authority granted to a person (the βdoneeβ or βholderβ) to designate who will receive certain property upon the occurrence of a specified event.
- Unexecuted Power of Appointment: A power of appointment that has not been exercised by the holder.
- Future Estate: An interest in property that is set to take effect in the future, rather than immediately.
- Limited in Default of Execution of the Power: A future estate that is set to take effect only if the power of appointment is not exercised.
- Taker in Default: The person who receives the property if the power of appointment is not exercised. This person has a vested future interest, subject to divestment if the power is later exercised.
The Rule in Simple Terms
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Hani Sarji
New York lawyer who cares about people, is fascinated by technology, and is writing his next book, Estate of Confusion: New York.
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