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Simple English definitions for legal terms
appointive assets
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A quick definition of appointive assets:
Appointive assets are things that someone can choose to give to someone else. These things can be land, buildings, or other belongings. When the person who has the power to choose gives these things away, the new owner gets to keep them. This is called a power of appointment.
A more thorough explanation:
Appointive assets are properties that are subject to a power of appointment. This means that the owner of the assets has the power to decide who will receive them after their death. Once the power of appointment is exercised, the ownership of the assets will transfer to the appointees.
- A wealthy individual creates a trust and designates their children as the beneficiaries. However, they also include a power of appointment that allows them to change the beneficiaries at any time. If the individual decides to exercise their power of appointment and appoints their grandchildren as the new beneficiaries, the assets in the trust become appointive assets.
- A person creates a will and designates their spouse as the sole beneficiary. However, they also include a power of appointment that allows their spouse to appoint the assets to their children or other heirs after their death. In this case, the assets in the will become appointive assets.
These examples illustrate how appointive assets work. The owner of the assets has the power to decide who will receive them, even after their death. This allows for flexibility and the ability to change beneficiaries as circumstances change.