A. A powerholder of a general power of appointment that permits appointment to the powerholder or the powerholder's estate may make any appointment, including an appointment in trust or creating a new power of appointment, that the powerholder could make in disposing of the powerholder's own property.
B. A powerholder of a general power of appointment that permits appointment only to the creditors of the powerholder or of the powerholder's estate may appoint only to those creditors.
C. Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the powerholder of a nongeneral power may:
(1) make an appointment in any form, including an appointment in trust, in favor of a permissible appointee;
(2) create a general power in a permissible appointee;
(3) create a nongeneral power in any person to appoint to one or more of the permissible appointees of the original nongeneral power; or
(4) create a nongeneral power in a permissible appointee to appoint to one or more persons if the permissible appointees of the new nongeneral power include the permissible appointees of the original nongeneral power.
History: Laws 2016, ch. 69, § 305; 2019, ch. 221, § 6.
ANNOTATIONSThe 2019 amendment, effective July 1, 2019, provided that a powerholder of a nongeneral power may create a nongeneral power in a permissible appointee to appoint to one or more persons if the permissible appointees of the new nongeneral power include the permissible appointees of the original nongeneral power; and in Subsection C, added Paragraph C(4).
Applicability. — Laws 2019, ch. 221, § 7, provided that the provisions of this act apply to:
A. a governing instrument created before, on or after July 1, 2019;
B. a judicial proceeding commenced on or after July 1, 2019; and
C. a judicial proceeding commenced before July 1, 2019, unless the court finds that application of a particular provision of this act would substantially interfere with the effective conduct of the judicial proceeding or prejudice a right of a party, in which case the particular provision does not apply and the previous law applies.