Crummey powers are a form of which type of power?

Crummey powers are a form of which type of power?

• A. Limited power of appointment
• B. Revocable power
• C. Dispositive power
• D. General power of appointment

Answer: (D)

Crummey powers are about a beneficiary’s immediate ability to reclaim trust contributions, creating a present interest in the gifted amount. That withdrawal right effectively gives the beneficiary the power to obtain the assets for their own benefit, which fits the broad, flexible nature of a general power of appointment. A general power allows the holder to appoint to themselves, their estate, or creditors, so the ability to take the trust funds for oneself aligns with that category. The other types don’t capture this broad, self-benefiting capability: a limited power restricts to a narrower class, revocable vs. irrevocable describes whether the power can be undone, and a dispositive power refers to distributing to beneficiaries but doesn’t emphasize the self-benefit aspect as clearly as the general power.

Crummey powers are about a beneficiary’s immediate ability to reclaim trust contributions, creating a present interest in the gifted amount. That withdrawal right effectively gives the beneficiary the power to obtain the assets for their own benefit, which fits the broad, flexible nature of a general power of appointment. A general power allows the holder to appoint to themselves, their estate, or creditors, so the ability to take the trust funds for oneself aligns with that category. The other types don’t capture this broad, self-benefiting capability: a limited power restricts to a narrower class, revocable vs. irrevocable describes whether the power can be undone, and a dispositive power refers to distributing to beneficiaries but doesn’t emphasize the self-benefit aspect as clearly as the general power.