Exercise of Power of Appointment Does Not Create a New Trust

Testator died leaving a trust under her will for her children, creating powers of appointments for each child, and an administrative power, allowing the removal of the corporate trustee with the consent of all income beneficiaries. After the death of one of the children and his exercise of the power of appointment under his will, the new income beneficiaries removed the corporate trustee and appointed a new trustee. The removed corporate trustee refused, and the beneficiaries sought declaratory judgment. Court held that the exercise of a power of appointment incorporates the new beneficiaries (and any other provisions allowed) into the original trust under the original will, meaning the corporate trustee was effectively removed. Jurisdiction in Montgomery County was not proper, but Court acted so as to resolve the issue, but all further litigation must be in Delaware County. Cassatt Trust, 5 Fid. Rep. 3d 151 (OC Mont. 2015) (Opinion by Murphy, J.)

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