72-7-303. Intent to exercise — after-acquired power. Unless the terms of the instrument exercising a power of appointment manifest a contrary intent:

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Terms Used In Montana Code 72-7-303

  • Blanket-exercise clause: means a clause in an instrument that exercises a power of appointment and is not a specific-exercise clause. See Montana Code 72-7-102
  • Gift-in-default clause: means a clause identifying a taker in default of appointment. See Montana Code 72-7-102
  • Instrument: means a writing. See Montana Code 72-7-102
  • 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 Montana Code 72-7-102
  • Powerholder: means a person in whom a donor creates a power of appointment. See Montana Code 72-7-102

(1)except as otherwise provided in subsection (2), a blanket-exercise clause extends to a power acquired by the powerholder after executing the instrument containing the clause; and

(2)if the powerholder is also the donor of the power, the clause does not extend to the power unless there is no gift-in-default clause or the gift-in-default clause is ineffective.