Power of appointment (Bestimmungsrecht)

The German equivalent of a (limited) power of appointment is the power to determine a legatee under § 2151 of the German Civil Code (BGB) and the power to determine the legacy under § 2156 BGB:

  • Under § 2151 BGB, the testator may give a legacy (Vermächtnis) to more than one person in such a way that the person charged or a third person (e.g. an executor) may decide who of such persons receives the legacy.
  • Pursuant to § 2156 BGB the testator may leave the determination of the legacy to the reasonable discretion of the person charged or of a third party. However, he needs to specify the purpose of such power.