To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to withdraw property from, revoke or amend a trust:

A. the gift-in-default clause controls the disposition of the unappointed property; or

B. if there is no gift-in-default clause or to the extent the clause is ineffective:

1. (1) except as otherwise provided in Paragraph (2) of this subsection, the unappointed property passes to:

   1. (a) the powerholder if the powerholder is a permissible appointee and is living; or
   2. (b) if the powerholder is an impermissible appointee or deceased, the powerholder's estate if the estate is a permissible appointee; or
2. (2) to the extent the powerholder released the power, or if there is no taker under Paragraph (1) of this subsection, the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.

History: Laws 2016, ch. 69, § 310.

ANNOTATIONS

Effective dates. — Laws 2016, ch. 69, § 727B made Laws 2016, ch. 69, §§ 101 through 603 and 724 effective January 1, 2017.