Chapter 702

702.104   Common law and principles of equity.

702.105   Default rules.

SUBCHAPTER II

CREATION, REVOCATION, AND AMENDMENT
OF POWER OF APPOINTMENT

702.201   Creation of power of appointment.

702.202   Nontransferability.

702.203   Presumption of unlimited authority.

702.204   Exception to presumption of unlimited authority.

702.205   Rules of classification.

702.206   Power to revoke or amend.

SUBCHAPTER III

EXERCISE OF POWER OF APPOINTMENT

702.301   Requisites for exercise of power of appointment.

702.302   Intent to exercise: determining intent from residuary clause.

702.303   Intent to exercise: after-acquired power.

702.304   Substantial compliance with donor-imposed formal requirement.

702.305   Permissible appointment.

702.306   Appointment to a deceased appointee.

702.307   Impermissible appointment.

702.308   Selective allocation doctrine.

702.309   Capture doctrine: disposition of ineffectively appointed property under general power.

702.310   Disposition of unappointed property under released or unexercised general power.

702.311   Disposition of unappointed property under released or unexercised nongeneral power of appointment.

702.312   Disposition of unappointed property if partial appointment to taker in default.

702.313   Appointment to taker in default.

702.314   Powerholder’s authority to revoke or amend exercise.

702.315   Presumption of nonexercise of a power of appointment.

SUBCHAPTER IV

DISCLAIMER OR RELEASE; CONTRACT
TO APPOINT OR NOT TO APPOINT

702.401   Disclaimer.

702.402   Authority to release.

702.403   Method of release.

702.404   Revocation of amendment of release.

702.405   Power to contract: presently exercisable power of appointment.

702.406   Power to contract: power of appointment not presently exercisable.

702.407   Remedy for breach of contract to appoint or not to appoint.

SUBCHAPTER V

RIGHTS OF POWERHOLDER’S CREDITORS
IN APPOINTIVE PROPERTY

702.501   Creditor claim: general power created by powerholder.

702.502   Creditor claim: general power not created by powerholder.

702.503   Power to withdraw.

702.504   Creditor claim: nongeneral power of appointment.

702.505   Third parties in good faith protected.

SUBCHAPTER VI

MISCELLANEOUS PROVISIONS

702.601   Recording instruments relating to a power of appointment.

702.602   Uniformity of application and construction.

702.603   Relation to electronic signatures in global and national commerce act.

702.604   Applicability.

subch. I of ch. 702 SUBCHAPTER I

GENERAL PROVISIONS

702.101 702.101 Short title. This act may be cited as the Uniform Powers of Appointment Act.

702.101 History History: 2023 a. 127.

702.102 702.102 Definitions. In this chapter:

702.102(1) (1) “Appointee” means a person to which a powerholder makes an appointment of appointive property.

702.102(2) (2) “Appointive property” means the property or property interest subject to a power of appointment.

702.102(3) (3) “Blanket-exercise clause” means a clause in an instrument that exercises a power of appointment and is not a specific-exercise clause. “Blanket-exercise clause” includes a clause that does any of the following:

702.102(3)(a) (a) Expressly uses the words “any power” in exercising a power of appointment the powerholder has.

702.102(3)(b) (b) Expressly uses the words “any property” in appointing any property over which a powerholder has a power of appointment.

702.102(3)(c) (c) Disposes of all property subject to disposition by the powerholder.

702.102(4) (4) “Broad limited power of appointment” means a power of appointment exercisable in favor of anyone other than the powerholder, the powerholder’s estate, the powerholder’s creditors, or the creditors of the powerholder’s estate.

702.102(5) (5) “Donor” means a person that creates a power of appointment.

702.102(6) (6) “Exclusionary power of appointment” means a power of appointment exercisable in favor of one or more permissible appointees to the exclusion of the other permissible appointees.

702.102(7) (7) “General power of appointment” means a power of appointment exercisable in favor of the powerholder, the powerholder’s estate, a creditor of the powerholder, or a creditor of the powerholder’s estate.

702.102(8) (8) “Gift-in-default clause” means a clause that identifies a taker in default of appointment.

702.102(9) (9) “Impermissible appointee” means a person that is not a permissible appointee.

702.102(10) (10) “Instrument” means a writing.

702.102(11) (11) “Nongeneral power of appointment” means a power of appointment that is not a general power of appointment.

702.102(12) (12) “Permissible appointee” means a person in whose favor a powerholder may exercise a power of appointment.

702.102(13) (13) “Person” means an individual, estate, trust, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.

702.102(14) (14) “Powerholder” means a person in which a donor creates a power of appointment.

702.102(15) (15) “Power of appointment” means a power that enables a powerholder acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over the appointive property. “Power of appointment” does not include a power of attorney.

702.102(16) (16) “Presently exercisable power of appointment” means a power of appointment exercisable by the powerholder at the relevant time. “Presently exercisable power of appointment” includes a power of appointment that is not exercisable until the occurrence of a specified event, the satisfaction of an ascertainable standard, or the passage of a specified time, and only after the occurrence of the specified event, the satisfaction of the ascertainable standard, or the passage of the specified time, but does not include a power exercisable only at the powerholder’s death.

702.102(17) (17) “Specific-exercise clause” means a clause in an instrument that specifically refers to and exercises a particular power of appointment.

702.102(18) (18) “Taker in default of appointment” means a person that takes all or part of the appointive property to the extent the powerholder does not effectively exercise the power of appointment.

702.102(19) (19) “Terms of the instrument” means the manifestation of the intent of the maker of the instrument regarding the instrument’s provisions as expressed in the instrument or as may be established by other evidence that would be admissible in a legal proceeding.

702.102 History History: 2023 a. 127.

702.103 702.103 Governing law. Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the creation, revocation, or amendment of a power of appointment is governed by the law of the donor’s domicile at the relevant time. The exercise, release, or disclaimer of a power of appointment, or the revocation or amendment of an exercise, release, or disclaimer of a power of appointment is governed by the law of the powerholder’s domicile at the relevant time.

702.103 History History: 2023 a. 127.

702.104 702.104 Common law and principles of equity. The common law and principles of equity supplement this chapter, except to the extent modified by this chapter or any other state law.

702.104 History History: 2023 a. 127.

702.105 702.105 Default rules. The terms of a governing instrument prevail over any provision of this subchapter.

702.105 History History: 2023 a. 127.

subch. II of ch. 702 SUBCHAPTER II

CREATION, REVOCATION, AND AMENDMENT
OF POWER OF APPOINTMENT

702.201 702.201 Creation of power of appointment.

702.201(1) (1) A power of appointment is created only if the instrument creating the power satisfies all of the following:

702.201(1)(a) (a) The instrument is valid under applicable law.