Exercising Limited Power of Appointment in Bad Faith

Surviving spouse, with a limited power of appointment over marital trust, exercised such appointment to the exclusion of one of her three children, to which the excluded child objected, because the surviving spouse had acted in bad faith and did not have the power to exclude her; the court examined PA case law and concluded that a donee (surviving spouse) exercising a limited power of appointment need only act within the language of the power conveyed, which the surviving spouse had.  Zucker Estate, 4 Fid. Rep. 3d 369 (O.C. Montgomery 2014) (Opinion by Ott, J.), aff’d, 122 A.3d 1112, 2015 PA Super 190 (9/8/2015).

[The disposition of this case by the Superior Court is somewhat unusual.   The Superior Court initially affirmed the trial court in a non-precedential opinion, No. 2727 EDA 2014 (Pa. Super 8/5/2015).   On 8/19/2015, one of the prevailing parties, Soctt R. Zucker filed an “Application for Publication of Memorandum Decision.”   On August 25, 2015, the application was granted, and an order entered that the “Memorandum filed August 5, 2015, will be withdrawn and refined as an Opinion in accordance with Superior Court Operating Procedure 65.37(B).”   The resulting opinion was published on 9/8/2015. ]

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