What This Rule Prevents
A general power of appointment lets someone direct where certain property goes. The donor (the person who created the power) can require a specific reference to use it.
This is a safeguard. It stops someone from accidentally moving property they did not intend to redirect.
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. § 14-2704A general statement like "I leave all my property to my children" would not trigger the power. The holder must name the power or its source document to activate it.
Why Precision Matters in Estate Documents
This statute protects families from unintended results. Without it, broad will language could redirect trust assets by accident.
The presumption favors the donor's intent. This means the original plan stays intact unless the holder acts on purpose.
The same logic applies to a limited power of appointment. The holder must follow the reference rule no matter the scope of the power.
How This Affects a Surviving Spouse and Other Holders
A surviving spouse who holds a power over trust assets faces the same rule. The surviving spouse's will must name the power if the trust requires an express reference.
A blanket statement leaving "all my property" to someone does not count. As a result, the property passes under the trust's default rules instead.
That default path often benefits the donor's descendants or other named heirs. Knowing about the reference rule makes it easy to follow.