Page 20 THE EVERETT ADVOCATE – Friday, June 14, 2019 EXERCISE OF POWERS OF APPOINTMENT “COMPLETE GLASS SERVICE CENTER” Storefronts & Entrance Doors O ften times, an individual may wish to have the right to control the ultimate distribution of a Trust. This is called a power of appointment. Powers of appointment are often included in Trust documents in order to create greater flexibility in a multigenerational estate plan. As an example, a husband may die leaving property in Trust for the benefit of his spouse. The terms of the Trust may provide that, upon the death of the surviving spouse, the remaining Trust principal will be distributed to the husband’s children. The terms of the Trust may also contain a power of appointment provision wherein the surviving spouse has the right to exercise this power of appointment via her Last Will and Testament thereby allowing her to redirect the ultimate distribution to only one child of the husband as opposed to all of his children and/ or the right to determine whether or not the Trust principal will be received outright or in further Trust. Another example would be if a daughter was named a lifetime income beneficiary of her parent’s living Trust. This Trust might contain a power of appointment provision allowing the daughter to exercise it via her Last Will and Testament. A specific provision must be included in her Will in order to exercise the power of appointment thereby appointing (distributing) the Trust principal to her spouse, her children, or even a charity. As part of the estate planning process, it is important to ascertain whether someone holds any such power of appointment as contained in a living trust (revocable or irrevocable) and, if so, to make sure that the power of appointment is exercised via the Last Will and Testament, if that person’s wish is to indeed exercise the power, or to at least confirm with the holder of the power that he or she does not wish to exercise the power. A power that may be exercised via one’s Last Will and Testament is referred to as a testamentary power of appointment. The holder of the power is also called the donee of the power or the power holder. The exercise of the power of appointment would occur once the Will is submitted to a probate court and allowed. Custom Mirrors • Table Tops • Auto Glass Insulated Glass • Window & Screen Repairs 2034 Revere Beach Parkway, Everett 617-389-GLAS Frank Berardino MA License 31811 • 24 - Hour Service • Emergency Repairs BERARDINO Plumbing & Heating Residential & Commercial Service Gas Fitting • Drain Service 617.699.9383 Senior Citizen Discount FRANK’S Housepainting (781) 289-0698 • Exterior • Ceiling Dr. • Power Wash • Paper Removal • Carpentry FREE ESTIMATES — Fully Insured Like us on Facebook advocate newspaper Facebook.com/ Advocate.news.ma general contracting pride contracting inc. excavation and construction pedro maldonado 781-241-3543 president and contractor saugus, massachusetts sales@pridecontractinginc.com construction, landscaping snow plowing, paving “Proper prep makes all the difference” – F. Ferrera • Interior
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