Virginia Code 64.2-2722: Disposition of unappointed property under released or unexercised general power.
To the extent that 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:
Terms Used In Virginia Code 64.2-2722
- Appointee: means a person to which a powerholder makes an appointment of appointive property. See Virginia Code 64.2-2700
- Donor: The person who makes a gift.
- Donor: means a person that creates a power of appointment. See Virginia Code 64.2-2700
- 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 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
- Impermissible appointee: means a person that is not a permissible appointee. See Virginia Code 64.2-2700
- Permissible appointee: means a person in whose favor a powerholder may exercise a power of appointment. 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
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 that the clause is ineffective:
a. Except as otherwise provided in subdivision 2 b, 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 deceased, the powerholder’s estate if the estate is a permissible appointee; or
b. To the extent that the powerholder released the power, or if there is no taker under subdivision 2 a, the unappointed property passes under a reversionary interest to the donor or the donor‘s transferee or successor in interest.
2016, c. 266.