Legal Definitions - appointive asset

Definition: An appointive asset is an item that is owned and has value. It can be anything from cash, inventory, equipment, real estate, accounts receivable, and goodwill. It is an asset distributed under a power of appointment.

Examples: A person may have an appointive asset in the form of a trust fund. The trustee has the power to distribute the assets to the beneficiaries according to the terms of the trust. Another example is a will, where the testator appoints an executor to distribute the assets to the beneficiaries.

Explanation: An appointive asset is a type of asset that is distributed under a power of appointment. It is different from other types of assets because it is not owned outright by the beneficiary. Instead, the beneficiary has the right to receive the asset at the discretion of the trustee or executor. This type of asset is often used in estate planning to provide flexibility in the distribution of assets.