A. As used in this section, “power of appointment created by the powerholder” includes a power of appointment created in a transfer by another person to the extent that the powerholder contributed value to the transfer.
B. Appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of the powerholder or of the powerholder’s estate to the extent provided in Chapter 5 (§ 55-80 et seq.) of Title 55.
C. Subject to subsection B, appointive property subject to a general power of appointment created by the powerholder is not subject to a claim of a creditor of the powerholder or the powerholder’s estate to the extent that the powerholder irrevocably appointed the property in favor of a person other than the powerholder or the powerholder’s estate.
D. Subject to subsections B and C, and notwithstanding the presence of a spendthrift provision or whether the claim arose before or after the creation of the power of appointment, appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of:
1. The powerholder, to the same extent as if the powerholder owned the appointive property, if the power is presently exercisable; and
2. The powerholder’s estate, to the extent that the estate is insufficient to satisfy the claim and subject to the right of a decedent to direct the source from which liabilities are paid, if the power is exercisable at the powerholder’s death.
History
2016, c. 266.
