Utah Code 75-10-310. 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 withdraw property from, revoke, or amend a trust:
(1) the gift-in-default clause controls the disposition of the unappointed property; or
Terms Used In Utah Code 75-10-310
- Appointee: means a person to which a powerholder makes an appointment of appointive property. See Utah Code 75-10-102
- Donor: The person who makes a gift.
- Donor: means a person that creates a power of appointment. See Utah Code 75-10-102
- Estate: includes the property of the decedent, trust, or other person whose affairs are subject to this title as originally constituted and as it exists from time to time during administration. See Utah Code 75-1-201 v2
- 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 Utah Code 75-10-102
- Gift-in-default clause: means a clause identifying a taker in default of appointment. See Utah Code 75-10-102
- Impermissible appointee: means a person that is not a permissible appointee. See Utah Code 75-10-102
- Permissible appointee: means a person in whose favor a powerholder may exercise a power of appointment. See Utah Code 75-10-102
- Powerholder: means a person in whom a donor creates a power of appointment. See Utah Code 75-10-102
- Property: includes both real and personal property or any interest therein and means anything that may be the subject of ownership. See Utah Code 75-1-201 v2
- Trust: includes :(60)(a)(i) a health savings account, as defined in Section 223of the Internal Revenue Code;(60)(a)(ii) an express trust, private or charitable, with additions thereto, wherever and however created; or(60)(a)(iii) a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. See Utah Code 75-1-201 v2(2) if there is no gift-in-default clause or to the extent the clause is ineffective:(2)(a) except as otherwise provided in Subsection (2)(b), the unappointed property passes to:(2)(a)(i) the powerholder if the powerholder is a permissible appointee and is living; or(2)(a)(ii) if the powerholder is an impermissible appointee or is deceased, the powerholder’s estate if the estate is a permissible appointee; or(2)(b) to the extent the powerholder released the power, or if there is no taker under Subsection (2)(a), the unappointed property passes under a reversionary interest to the donor or the donor‘s transferee or successor in interest.