Question

If a power of appointment fails to appoint, what happens to the attempted trust's property?

a) It reverts to the settlor
b) It goes to the state
c) It is distributed among the beneficiaries equally
d) It is held in trust for the next generation of beneficiaries

Answer 1

Answer:

a) It reverts to the settlor

Explanation:

When a power of appointment fails, the property typically reverts to the settlor (the person who created the trust) as a default provision. The settlor may have specified such a provision in the trust document or it may be a legal default in certain jurisdictions.