A more thorough explanation:

Power of appointment is a legal term that refers to the authority given to a person to decide who will inherit a property left by someone who has passed away. This authority is given by the person who owns the property, known as the donor, to another person, known as the donee. The donee can then choose the beneficiaries of the trust or will.

For example, if a wealthy person creates a trust and gives their child the power of appointment, the child can decide who will inherit the assets in the trust when the parent passes away. The child can either give the assets to one person or divide them among several beneficiaries.

There are two types of power of appointment: general and special. A general power of appointment gives the donee full discretion to choose the beneficiaries of the trust or will. A special power of appointment, on the other hand, limits the list of potential beneficiaries.

If the donee chooses not to exercise their power of appointment, the property will be distributed to the takers in default. This means that the property will be distributed according to the terms of the trust or will, or according to the laws of the state if there is no trust or will.