CODE OF VIRGINIA

WHEN NONVESTED PROPERTY INTEREST OR POWER OF APPOINTMENT CREATED (§ 55-12.2)

A. Except as provided in subsections B and C and in § 55-12.5, the time of
creation of a nonvested property interest or a power of appointment is
determined under general principles of property law.

B. For the purposes of §§ 55-12.1 through 55-12.6, if there is a person who
alone can exercise a power created by a governing instrument to become the
unqualified beneficial owner of (i) a nonvested property interest or (ii) a
property interest subject to a power of appointment described in subsection B or
C in § 55-12.1, the nonvested property interest or power of appointment is
created when the power to become the unqualified beneficial owner terminates.

C. For the purposes of §§ 55-12.1 through 55-12.6, a nonvested property
interest or a power of appointment arising from a transfer of property to a
previously funded trust or other existing property arrangement is created when
the nonvested property interest or power of appointment in the original
contribution was created.

HISTORY: 2000, c. 714.