Kentucky Statutes 390.190 – Capture doctrine — Disposition of ineffectively appointed property under general power
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To the extent a powerholder of a general power of appointment, other than a power to revoke, amend, or withdraw property from a trust, makes an ineffective appointment:
(1) The gift-in-default clause controls the disposition of the ineffectively appointed property; or
(2) If there is no gift-in-default clause or to the extent the clause is ineffective, the ineffectively appointed property:
(a) Passes to:
1. The powerholder if the powerholder is a permissible appointee and living; or
2. If the powerholder is an impermissible appointee or not living, the powerholder’s estate if the estate is a permissible appointee; or
(b) If there is no taker under paragraph (a) of this subsection, passes under a reversionary interest to the donor or the donor‘s transferee or successor in interest.
Effective: July 15, 2020
History: Created 2020 Ky. Acts ch. 41, sec. 18, effective July 15, 2020.
(1) The gift-in-default clause controls the disposition of the ineffectively appointed property; or
Terms Used In Kentucky Statutes 390.190
- Appointee: means a person to whom a powerholder makes an appointment of appointive property. See Kentucky Statutes 390.020
- Donor: The person who makes a gift.
- Donor: means a person who creates a power of appointment. See Kentucky Statutes 390.020
- 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 Kentucky Statutes 390.020
- Permissible appointee: means a person in whose favor a powerholder may exercise a power of appointment. See Kentucky Statutes 390.020
- Powerholder: means a person in whom a donor creates a power of appointment. See Kentucky Statutes 390.020
(2) If there is no gift-in-default clause or to the extent the clause is ineffective, the ineffectively appointed property:
(a) Passes to:
1. The powerholder if the powerholder is a permissible appointee and living; or
2. If the powerholder is an impermissible appointee or not living, the powerholder’s estate if the estate is a permissible appointee; or
(b) If there is no taker under paragraph (a) of this subsection, passes under a reversionary interest to the donor or the donor‘s transferee or successor in interest.
Effective: July 15, 2020
History: Created 2020 Ky. Acts ch. 41, sec. 18, effective July 15, 2020.