Kentucky Statutes 390.200 – Disposition of unappointed property under released or unexercised general power
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To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to revoke, amend, or withdraw property from a trust:
(1) The gift-in-default clause controls the disposition of the unappointed property; or
(2) If there is no gift-in-default clause or to the extent the clause is ineffective:
(a) Except as otherwise provided in paragraph (b) of this subsection, the unappointed property 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) To the extent the powerholder released the power, or if there is no taker under paragraph (a) of this subsection, the unappointed property 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. 19, effective July 15, 2020.
(1) The gift-in-default clause controls the disposition of the unappointed property; or
Terms Used In Kentucky Statutes 390.200
- 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:
(a) Except as otherwise provided in paragraph (b) of this subsection, the unappointed property 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) To the extent the powerholder released the power, or if there is no taker under paragraph (a) of this subsection, the unappointed property 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. 19, effective July 15, 2020.