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A "power of appointment" enables the beneficiary of a trust to decide to whom the trust's assets will be distributed when the trust terminates. A "testamentary" power of appointment means that the power may be exercised only in the beneficiary's Will and the power only becomes effective on the beneficiary's death. Powers of appointment may be "limited" so that the group of people to whom the trust assets may be given is restricted, or "general" so that the beneficiary may give the trust assets to his/her estate, and thereby, to anyone named in his/her Will.
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