Section 556.112 - Powers of appointment act; definitions. - Michigan Statutes

POWERS OF APPOINTMENT ACT OF 1967 (EXCERPT)
Act 224 of 1967

556.112 Powers of appointment act; definitions.

Sec. 2.

As used in this act:

(a) “Property” means any legal or equitable interest in real or personal property, including choses in action.

(b) “Power” means a power of appointment over property.

(c) “Power of appointment” means a power created or reserved by a person having property subject to his disposition which enables the donee of the power to designate, within any limits that may be prescribed, the transferees of the property or the shares or the interests in which it shall be received; but it does not include a power of sale, a power of attorney or a power of amendment or revocation.

(d) “Donor” means the person who creates or reserves the power.

(e) “Donee” means the person to whom the power is granted or reserved.

(f) “Appointee” means the person to whom an interest in property is designated or transferred by exercise of the power.

(g) “Creating instrument” means the deed, will, trust agreement or other writing or document which creates or reserves the power.

(h) “General power” means a power exercisable in favor of the donee, his estate, his creditors or the creditors of his estate, whether or not it is exercisable in favor of others. A power to appoint to any person or a power which is not expressly restricted as to appointees is a general power. A power may be general as to some property and special as to other property.

(i) “Special power” means a power exercisable only in favor of 1 or more persons not including the donee, his estate, his creditors or the creditors of his estate.

(j) “Gift in default” means a transfer to a person designated in the creating instrument as the transferee of property if a power is not exercised or is released.

(k) “Release” means renunciation, relinquishment, surrender, refusal to accept, and any other form of release.

(l) A power of appointment is “presently” exercisable whenever the creating instrument does not manifest an intent that its exercise shall be solely by will or otherwise postponed.

History: 1967, Act 224, Eff. Nov. 2, 1967