Sec. 1319. Disposition of unappointed property under released or unexercised general power.
152 words·~1 min read·
/il/chapter-760/act-3/1319A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 1319. Disposition of unappointed property under released or unexercised general power. 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 subparagraph (B), the unappointed property
passes to:
(i)the powerholder if the powerholder is a permissible appointee and living;
or
(ii)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
subparagraph (A), the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.