N.Y. Estates, Powers and Trusts Law 10-5.3 – Contract to appoint; power not presently exercisable
§ 10-5.3 Contract to appoint; power not presently exercisable
Terms Used In N.Y. Estates, Powers and Trusts Law 10-5.3
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Donee: The recipient of a gift.
- Donor: The person who makes a gift.
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
(a) The donee of a power of appointment which is not presently exercisable, or of a postponed power which has not become exercisable, cannot contract to make an appointment; except that this prohibition shall not apply if the donor and donee are the same person. Such a prohibited contract, if made, cannot be the basis of an action for specific performance or damages, but the promisee can obtain restitution of the value given by him for the promise unless the donee has exercised the power pursuant to the contract.
(b) The provisions of this section shall not abridge the ability of the donee of a power of appointment which is not presently exercisable to release his power pursuant to 10-9.2 or to make the power, after release, an imperative power, except that where the donor designated persons or a class to take in default of the donee's exercise of the power, a release with respect to appointive property must serve to benefit all those so designated as provided by the donor.