Which option is NOT one of the three types of general powers of appointment?

Which option is NOT one of the three types of general powers of appointment?

• A. Lifetime
• B. Testamentary
• C. Crummey
• D. 5 x 5

Answer: (C)

A general power of appointment is a broad authority to designate who will receive trust property, including the possibility of directing it to oneself or one's estate, and it can be exercised in two main ways: during the grantor’s lifetime (inter vivos) or at death through a will (testamentary). Crummey, however, is not a power of appointment. It’s a withdrawal right given to a beneficiary so they can access trust contributions for a short period, used mainly to make gifts eligible for the annual gift tax exclusion. It does not give the holder the authority to appoint the trust assets to others. That’s why Crummey is the correct choice for not being one of the general powers of appointment.

A general power of appointment is a broad authority to designate who will receive trust property, including the possibility of directing it to oneself or one's estate, and it can be exercised in two main ways: during the grantor’s lifetime (inter vivos) or at death through a will (testamentary). Crummey, however, is not a power of appointment. It’s a withdrawal right given to a beneficiary so they can access trust contributions for a short period, used mainly to make gifts eligible for the annual gift tax exclusion. It does not give the holder the authority to appoint the trust assets to others. That’s why Crummey is the correct choice for not being one of the general powers of appointment.