If you are a beneficiary under a will or trust, you may have been given a power of appointment to direct the ultimate disposition of your share in a general or limited way at your death. The problem is that most people either do not know they have the power of appointment, or do not understand what it is or how to exercise it. The consequences of this lack of knowledge can be serious, as the power of appointment must be exercised properly to be effective. As always, client education and the education of beneficiaries who are provided with the power of appointment is essential to success.
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