Exercise of Powers

A residuary clause in a will does not automatically exercise a power of appointment unless it specifically mentions that power. In California, if a donor has set formal requirements for exercising a power, the will must substantially comply with those requirements to be valid.

Alice's will includes a residuary clause that states, 'I leave all my remaining assets to my children.' However, she had a specific power of appointment over a trust that required her to explicitly mention it. Since she did not reference the trust, her children do not inherit those assets from the trust.

Residue without reference means no power exercised.

Exams often present scenarios where students might assume a residuary clause suffices to exercise a power, leading to incorrect conclusions.

Questions typically involve a will's language and require candidates to analyze whether a power of appointment was properly exercised based on the specific wording used.