If a powerholder makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-in-default clause had the property not been appointed, the power of appointment is deemed not to have been exercised and the appointee takes under the clause.

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Terms Used In Virginia Code 64.2-2725

  • Appointee: means a person to which a powerholder makes an appointment of appointive property. See Virginia Code 64.2-2700
  • Gift-in-default clause: means a clause in the instrument creating the power identifying a taker in default of appointment. See Virginia Code 64.2-2700
  • 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. See Virginia Code 64.2-2700
  • Powerholder: means a person in which a donor creates a power of appointment. See Virginia Code 64.2-2700
  • Taker in default of appointment: means a person that takes all or part of the appointive property to the extent that the powerholder does not effectively exercise the power of appointment. See Virginia Code 64.2-2700

2016, c. 266.