20 Pa.C.S. Ch. 76

in effect

20 Pa.C.S. § 7601 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Broad power of appointment." A power of appointment that the donee may exercise in favor of any one or more of the following: (1) One or more persons selected by the donee. (2) The donee. (3) The donee's estate. (4) Every person other than the donee, the donee's creditors, the donee's estate or the creditors of the donee's estate. "Limited power of appointment." A power of appointment that is not a broad power of appointment. The term includes a power to appoint to the donee's creditors or the creditors of the donee's estate.

20 Pa.C.S. § 7602 Exercise of powers of appointment.

(a) Broad power of appointment.--Subject to subsection (c), in the absence of a contrary intent appearing in the instrument creating a broad power of appointment or in the donee's instrument exercising the power, a broad power of appointment may be exercised only by the donee's instrument making: (1) specific reference to the power; (2) general reference to any or all powers of appointment held by the donee; (3) a testamentary or inter vivos gift specifically describing the appointive property; (4) an insufficiently funded testamentary pecuniary legacy, to the extent to satisfy the legacy; (5) a general testamentary gift; or (6) a testamentary residuary gift. (b) Limited power of appointment.-- (1) Subject to paragraph (2) and subsection (c), in the absence of a contrary intent appearing in the instrument creating a limited power of appointment or in the donee's instrument exercising the power, a limited power of appointment may be exercised only by the donee's instrument making: (i) specific reference to the power; (ii) a testamentary or inter vivos gift specifically describing the appointive property; (iii) a general testamentary gift to all, and only to all, the objects of the power; or (iv) a testamentary residuary gift to all, and only to all, the objects of the power. (2) The objects of the power described in paragraph (1)(iii) and (iv) who have a common ancestor shall be only those descendants of the common ancestor determined on a per stirpes basis. (c) Necessity of donee's specific reference to power.--A power of appointment may be exercised only by specific reference to the power if the instrument creating the power so requires. (d) Exercise before testamentary power granted.--In the absence of a contrary intent appearing in the instrument creating a power of appointment exercisable at the donee's death or in the donee's instrument exercising the power, the donee's instrument may exercise a power of appointment existing at the donee's death even though the power was granted after the date of the donee's instrument. (e) Testamentary powers.-- (1) Notwithstanding any contrary provision in an instrument creating a power of appointment, a testamentary power of appointment shall not be exercisable in favor of the donee or the donee's creditors. (2) A grant of a testamentary power to appoint to the donee's creditors shall be construed as a power to appoint to the creditors of the donee's estate. In the absence of a specific contrary intent appearing in the instrument, the grant of a testamentary power that denies the right to appoint to the donee's creditors shall be construed as also denying the power to appoint to the creditors of the donee's estate. (3) An attempted exercise of a testamentary power of appointment in favor of the donee's creditors shall be construed as an exercise in favor of those creditors of the donee's estate who were also creditors of the donee at the time of the donee's death. (4) If the donee is an issue of the donor, a testamentary power of appointment to appoint to the donor's issue shall not be exercisable in favor of the donee or the donee's estate. (Oct. 30, 2017, P.L.417, No.41, eff. imd.) 2017 Amendment. Act 41 amended subsec. (e)(2). Section 2 of Act 41 provided that the amendment of subsec. (e)(2) shall apply to all powers of appointment created before, on or after the effective date of section 2. Cross References. Section 7602 is referred to in section 7604 of this title.

20 Pa.C.S. § 7603 Contract to exercise power.

(a) Contract prohibited.--Unless the donor and donee are the same person, the donee of a power of appointment that is not presently exercisable may not contract to exercise the power. (b) Actions for recovery.--A prohibited contract under subsection (a), if made, may not be the basis of an action for specific performance or damages, but the promisee can obtain restitution from the donee of the value given for the promise, unless the donee has exercised the power pursuant to the contract. (c) No limitation on disclaimer or release.--This section does not limit the power of a donee to disclaim or release a power of appointment in whole or in part.

20 Pa.C.S. § 7604 Manner of appointment.

(a) Outright or in trust.--Subject to section 7602(e) (relating to exercise of powers of appointment), unless expressly prohibited by the instrument creating a power of appointment, a donee may exercise a power by appointing in any manner, including, but not limited to: (1) Appointing outright to one or more objects of the power. (2) Appointing to one or more trustees to hold the appointive property in trust for the benefit of one or more objects of the power and specifying the terms and administrative provisions of the trust and the powers and duties of the trustees, even if the trustees themselves are not objects of the power. (3) Creating a broad or limited power of appointment exercisable by any one or more objects of the original power to whom the donee could have appointed outright, even if some of the objects of the new power are not among the objects of the original power, provided that if the original power is a limited power, other than a power to appoint to the donee's creditors or the creditors of the donee's estate: (i) All the objects of the original power are among the objects of the new power. (ii) All the takers in default of exercise of the new power are among the objects of the original power. (b) Exclusive and nonexclusive powers.--Unless the instrument creating a power of appointment expressly specifies a minimum share of, a minimum pecuniary amount of or a particular item of appointive property to be appointed to an object of the power, the donee may exclude any object of the power as the donee deems appropriate.

20 Pa.C.S. § 7605 Antilapse provision.

(a) General rule.-- (1) Subject to paragraphs (2) and (3), in the absence of a contrary intent appearing in the instrument creating a power of appointment or, in the donee's instrument, exercising the power, an exercise of the power of appointment in favor of any of the following, whether designated by name or as one of a class, shall not fail if the appointee is not living at the time the appointment becomes effective: (i) A child or other issue of the donee. (ii) A brother or sister of the donee. (iii) A child of a brother or sister of the donee. (2) Paragraph (1) applies if: (i) One or more issues of the appointee are living at the time the appointment becomes effective. (ii) The issue under subparagraph (i), per stirpes, are objects of the power. (3) The property appointed to the deceased appointee shall pass per stirpes to the appointee's issue living at the time the appointment becomes effective, but the appointment to a brother or sister or child of a brother or sister of the donee shall fail to the extent the property would pass to the spouse or issue of the donee if the appointment were to lapse. (b) Lapsed share of residue.--In the absence of a contrary intent appearing in the donee's instrument exercising a power of appointment, if an appointment of an amount or share of the residue of the property subject to the power fails, the amount or share shall pass to the other appointees of the residue of the property subject to the power, if any, in proportion to their shares in the residue of the property subject to the power.

20 Pa.C.S. § 7606 Partially effective exercise.

In the absence of a contrary intent appearing in the instrument creating a power of appointment or in the donee's instrument exercising the power, a partially ineffective exercise of a power of appointment shall not make ineffective any otherwise effective portion of the exercise, unless the appointment regarded as a whole constitutes such an integrated plan that the parts cannot be separated without defeating the plan.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=20Fetched: 10/16/2026