What This Rule Prevents
A power of appointment gives someone the authority to direct where certain property goes. The person who created the power (the donor) can require that it only be exercised with a specific reference to the power itself. This is a safeguard. It prevents someone from accidentally redirecting property they did not intend to move.
If a governing instrument that creates a power of appointment expressly requires that the power be exercised by a reference, an express reference or a specific reference to the power or its source, it is presumed that the donor's intention was to prevent an inadvertent exercise of the power.
A.R.S. § 14-2704In practice, this means a general statement in a will like "I leave all my property to my children" would not automatically exercise a power of appointment that requires a specific reference. The person holding the power would need to explicitly name the power or its source document to activate it.
Why Precision Matters in Estate Documents
This statute protects families from unintended consequences. Without it, broad language in a will could accidentally redirect trust assets or other property governed by a power of appointment. The presumption favors the donor's intent, which keeps the original plan intact unless the holder of the power takes deliberate action.
For anyone who holds a power of appointment, this is a practical reminder: review the original document that granted the power. If it requires a specific reference, make sure your will or trust uses the exact language needed. A general bequest will not be enough.
