Capture doctrine - disposition of ineffectively appointed property under general power.

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(1) To the extent a powerholder of a general power of appointment, other than a power to withdraw property from, revoke, or amend a trust, makes an ineffective appointment:

  1. The gift-in-default clause controls the disposition of the ineffectively appointed property; or

  2. If there is no gift-in-default clause, or to the extent the clause is ineffective, theineffectively appointed property:

(I) 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'sestate if the estate is a permissible appointee; or

(II) If there is no taker under subparagraph (I) of this paragraph (b), passes under a reversionary interest to the donor or to the donor's transferee or successor in interest.

Source: L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 778, § 1, effective July 1, 2015.


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