Takers in Default Law and Legal Definition
In the context of a power of appointment, the takers in default are the individuals who take if the power is not properly exercised. These individuals or class of individuals are usually named in the “takers in default clause.”
An example for such a clause is as follows: “The donor is the person who creates the power. The person who gets the power is called the donee. The donee can give the property only to people the donor identifies as objects of the power, which may or may not include the donee. If the donee exercises the power, the recipient is called an appointee. To the extent the donee does not exercise the power, the property goes to a taker in default, if the donor so provided. The same person may assume several roles.”
