The decedent created a voluntary trust, providing for income payments to himself during his life and upon his death to X for her life, and directing the trustee "at her death to pay over and deliver the principal of said trust to whomsoever may be designated by her by Will or other testimentary instrument . . . . " In the event that she failed to make such designation, her descendants, or, if there were none, her heirs were to receive the principal. X in her will gave her husband a life estate and, on his death or remarriage, bequeathed the property to a trustee for the benefit of her children and grandchildren. The question raised was as to the validity of this exercise of the power of appointment, it being contended that only an outright appointment of the principal was permissible. Held, that the power was validly exercised, there being nothing in the instrument of its creation requiring an outright appointment of principal. Massey v. Guaranty Trust Co., (Neb. 1942) 5 N.W. (2d) 279.
H. M. Peter,
POWERS - LESS THAN OUTRIGHT APPOINTMENTS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol41/iss5/22