Reserved power of appointment is when the owner of the appointive assets gives the appointive assets away, but reserves to themselves a power of appointment (the ability to choose the beneficiaries of the property). In other words, it is when a donor gives property to a donee but keeps the power to decide who gets it in the future.
For example, a grandmother gives her house to her grandchild but reserves the ability to decide what happens to the house once the grandchild is financially stable.
[Last updated in May of 2024 by the Wex Definitions Team]
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