What is a general power of appointment?

A general power of appointment is a legal authority that allows an individual, typically a beneficiary of a trust or an estate, to appoint or transfer property to themselves or their creditors. This means that the individual can exercise control over the property in a way that can directly benefit them, including settling personal debts. This characteristic distinguishes a general power of appointment from other types of powers, which might be more restrictive or limited in scope.

In particular, this form of power is significant because it can result in the assets being included in the individual's taxable estate, affecting their tax planning and estate management strategies. The flexibility it provides allows the holder of the power to make decisions that align with personal financial needs and obligations.

The other choices represent different concepts that do not accurately summarize the nature of a general power of appointment, as they obscure the fundamental aspect of the power relating to control over assets primarily for personal use or benefit.