Will of Carroll
Court of Appeals of New York
8 N.E.2d 864 (1937)
William Carroll's will placed assets in trust for his daughter Elsa for life and gave her a power to appoint the trust property, by will, to her children or surviving relatives. Elsa's will left $250,000 to her cousin Paul Curtis. Curtis had signed a letter, drafted by the same attorney, promising in consideration of the bequest to pay $100,000 to Elsa's husband, who was not a permissible appointee. Curtis testified they reached this agreement before Elsa executed her will. The executor (plaintiff) petitioned to determine the effect of the arrangement. The lower court voided the entire bequest as a fraud on the power; the Appellate Division voided only the $100,000 meant for the husband.
Whether the donee of a power of appointment limited to certain appointees may enter an agreement with an appointee to provide a bequest to a person who is not a permitted appointee.