To the extent a powerholder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment:

1. (1) the gift-in-default clause controls the disposition of the unappointed property; or

2. (2) if there is no gift-in-default clause or to the extent the clause is ineffective, the unappointed property:

   1. (a) passes to the permissible appointees if:

      1. (i) the permissible appointees are defined and limited; and
      2. (ii) the terms of the instrument creating the power do not manifest a contrary intent; or
   2. (b) if there is no taker under Subsection (2)(a), passes under a reversionary interest to the donor or the donor's transferee or successor in interest.

Renumbered and Amended by Chapter 364, 2024 General Session