To the extent that 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:
1. The gift-in-default clause controls the disposition of the unappointed property; or
2. If there is no gift-in-default clause or to the extent that the clause is ineffective:
a. Except as otherwise provided in subdivision 2 b, the unappointed property passes to:
(1. The powerholder if the powerholder is a permissible appointee and living; or
(2. If the powerholder is an impermissible appointee or deceased, the powerholder’s estate if the estate is a permissible appointee; or
b. To the extent that the powerholder released the power, or if there is no taker under subdivision 2 a, the unappointed property passes under a reversionary interest to the donor or the donor’s transferee or successor in interest.
History
2016, c. 266.
