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Trust Glossary

Five and Five Power - An express IRS exception to the general power of appointment rules. If provided for in a trust, a beneficiary may have the power to withdraw annually up to the greater of $5,000 or five percent of trust principal without that power's being considered a general power of appointment and causing all the trust principal to be included in his/her estate at death for estate tax purposes.

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The content in this glossary is general in nature and is intended for informational purposes only. It is not intended to provide specific advice or recommendations for any individual or organization, because the facts and circumstances surrounding each situation differ. Please consult your attorney, tax advisor or other professional advisor for advice on your particular situation.

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