Disposition of unappointed property under released or unexercised nongeneral power.

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  • (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 the clause is ineffective, the unappointed property:
    • (a) passes to the permissible appointees if:
      • (i) the permissible appointees are defined and limited; and
      • (ii) the terms of the instrument creating the power do not manifest a contrary intent; or
    • (b) if there is no taker under Subsection (2)(a), passes under a reversionary interest to the donor or the donor's transferee or successor in interest.




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