ABSTRACT
A ‘power of appointment’ is an authority to distribute property belonging to another. The appointor (or donee of the power) is not obliged to distribute the property. In the event of a failure to distribute the property, the beneficiary entitled on an express gift over in default of appointment will acquire the property. Alternatively, a resulting trust may arise in favour of the settlor (or donor of the power). A power may be ‘personal’, ie, no fiduciary duties are imposed on the donee of the power, ‘fiduciary’, ie, imposing fiduciary duties on the donee of the power (see Re Hay’s Settlement Trusts), or a ‘fiduciary power in the full sense’. This last type of power is incapable of being released: see Mettoy Pension Trustees v Evans [1990] 1 WLR 1587, HC (see p 112 below).
