AB803,,569569(c) The terms of the instrument manifest the donor’s intent to create in a powerholder a power of appointment over the appointive property exercisable in favor of a permissible appointee.

AB803,,570570(2) Subsection (1) (b) does not apply to a power of appointment that is created by the exercise of a power of appointment.

AB803,,571571(3) A power of appointment may not be created in a deceased individual.

AB803,,572572(4) A power of appointment may be created in an unborn or unascertained powerholder.

AB803,,573573702.202 Nontransferability. A powerholder may not transfer a power of appointment. If a powerholder dies without exercising or releasing a power of appointment, the power lapses.

AB803,,574574702.203 Presumption of unlimited authority. Subject to ss. 702.204 and 702.205, and unless the terms of the instrument creating a power of appointment manifest a contrary intent, a power of appointment is all of the following:

AB803,,575575(1) A presently exercisable power of appointment.

AB803,,576576(2) An exclusionary power of appointment.

AB803,,577577(3) A general power of appointment.

AB803,,578578702.204 Exception to presumption of unlimited authority. Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is a nongeneral power of appointment if all of the following apply:

AB803,,579579(1) The power is exercisable only at the powerholder’s death.

AB803,,580580(2) The permissible appointees of the power are a defined and limited class that does not include the powerholder’s estate, the powerholder’s creditors, or the creditors of the powerholder’s estate.

AB803,,581581702.205 Rules of classification. (1) In this section, “adverse party” means a person with a substantial beneficial interest in appointive property that would be affected adversely by a powerholder’s exercise or nonexercise of a power of appointment in favor of the powerholder, the powerholder’s estate, a creditor of the powerholder, or a creditor of the powerholder’s estate.

AB803,,582582(2) If a powerholder may exercise a power of appointment only with the consent or joinder of an adverse party, the power is a nongeneral power of appointment.

AB803,,583583(3) If the permissible appointees of a power of appointment are not defined and limited, the power is an exclusionary power of appointment.

AB803,,584584702.206 Power to revoke or amend. A donor may revoke or amend a power of appointment only to the extent that any of the following applies:

AB803,,585585(1) The instrument creating the power is revocable by the donor.

AB803,,586586(2) The donor reserves a power of revocation or amendment over the power of appointment in the instrument.

AB803,,587587SUBCHAPTER III

AB803,,588588EXERCISE OF POWER OF APPOINTMENT

AB803,,589589702.301 Requisites for exercise of power of appointment. (1) (a) A power of appointment is exercised only if all of the following apply:

AB803,,5905901. The instrument exercising the power is valid under applicable law.

AB803,,5915912. The terms of the instrument exercising the power do all of the following:

AB803,,592592a. Manifest the powerholder’s intent to exercise the power.

AB803,,593593b. Subject to s. 702.304, satisfy the requirements of exercise, if any, imposed by the donor.

AB803,,594594(b) A power of appointment is exercised under par. (a) only to the extent the appointment is a permissible exercise of the power.

AB803,,595595(2) If the donor requires the consent of the donor or any other person for the exercise of a power of appointment, the consent must be expressed in the instrument exercising the power of appointment or in a separate written instrument, signed in either case by the persons whose consent is required. If any person whose consent is required dies or becomes legally incapable of consenting, the power of appointment may be exercised by the powerholder without the consent of that person unless the terms of the instrument creating the power of appointment manifest a contrary intent.