75-10-310. Disposition of unappointed property under released or unexercised general power. To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to withdraw property from, revoke, or amend a trust:
(1)
the gift-in-default clause controls the disposition of the unappointed property; or
Need help with a review of a will? Have it reviewed by a lawyer, get answers to your questions and move forward with confidence. Connect with a lawyer now
Terms Used In Utah Code 75-10-310
Appointee: means a person to which a powerholder makes an appointment of appointive property. See Utah Code 75-10-102
Donor: The person who makes a gift.
Donor: means a person that creates a power of appointment. See Utah Code 75-10-102
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. See Utah Code 75-10-102
Gift-in-default clause: means a clause identifying a taker in default of appointment. See Utah Code 75-10-102
Impermissible appointee: means a person that is not a permissible appointee. See Utah Code 75-10-102
Permissible appointee: means a person in whose favor a powerholder may exercise a power of appointment. See Utah Code 75-10-102
Powerholder: means a person in whom a donor creates a power of appointment. See Utah Code 75-10-102
if there is no gift-in-default clause or to the extent the clause is ineffective:
(a)
except as otherwise provided in Subsection (2)(b), the unappointed property passes to:
(i)
the powerholder if the powerholder is a permissible appointee and is living; or
(ii)
if the powerholder is an impermissible appointee or is deceased, the powerholder’s estate if the estate is a permissible appointee; or
(b)
to the extent the powerholder released the power, or if there is no taker under Subsection (2)(a), the unappointed property passes under a reversionary interest to the donor or the donor‘s transferee or successor in interest.
