Virginia Code 64.2-2723: Disposition of unappointed property under released or unexercised nongeneral power.
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To the extent that a powerholder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment:
Terms Used In Virginia Code 64.2-2723
- Donor: The person who makes a gift.
- Donor: means a person that creates a power of appointment. 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
- Instrument: means a record. See Virginia Code 64.2-2700
- Nongeneral power of appointment: means a power of appointment that is not a general 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, the unappointed property:
a. Passes to the permissible appointees if:
(1) The permissible appointees are defined and limited; and
(2) The terms of the instrument creating the power do not manifest a contrary intent; or
b. If there is no taker under subdivision 2 a, passes under a reversionary interest to the donor or the donor‘s transferee or successor in interest.
2016, c. 266.