(a) Except as otherwise provided in subsection (b) of this section, and only when and to the extent that the power holder exercises the power, appointive property subject to a general power of appointment created by a person other than the power holder is subject to a claim of a creditor of:

(1) The power holder, to the extent the power holder’s property is insufficient, if the power is presently exercisable.

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Terms Used In North Carolina General Statutes 31D-5-502

  • Decedent: A deceased person.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • property: shall include all property, both real and personal. See North Carolina General Statutes 12-3

(2) The power holder’s estate, to the extent the estate is insufficient, subject to the right of a decedent to direct the source from which liabilities are paid.

(b) Subject to the provisions of N.C. Gen. Stat. § 31D-5-504(c), a power of appointment created by a person other than the power holder which is subject to an ascertainable standard relating to an individual’s health, education, support, or maintenance within the meaning of section 2041(b)(1)(A) or section 2514(c)(1) of the Internal Revenue Code, as amended, is treated for purposes of this Article as a nongeneral power. (2015-205, s. 3(a).)

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