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:

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Terms Used In New Mexico Statutes 46-11-309

  • Donor: The person who makes a gift.

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

B. if there is no gift-in-default clause or to the extent the clause is ineffective, the ineffectively appointed property:

(1)     passes to:

living; or

(a) the powerholder if the powerholder is a permissible appointee and is (b) if the powerholder is an impermissible appointee or deceased, the powerholder’s estate if the estate is a permissible appointee; or

(2)     if there is no taker under Paragraph (1) of this subsection, passes under a reversionary interest to the donor or the donor’s transferee or successor in interest.