🔑 Explanation of New York EPTL § 6-5.2: Power of Appointment Not to Prevent Vesting

New York Estates, Powers and Trusts Law (EPTL) § 6-5.2 addresses the impact of an unexecuted power of appointment on the vesting of a future estate.

Text of the Statute

§ 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

Here’s a breakdown of its meaning:

• Power of Appointment: A legal authority granted to a person (the “donee” or “holder”) 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