Sec. 1332. Creditor claim: general power created by powerholder.

253 words·~1 min read·/il/chapter-760/act-3/1332

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)In this Section, "power of appointment created by the powerholder" includes a power of appointment created in a transfer by another person to the extent the powerholder contributed value to the transfer.

(b)Appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of the powerholder or of the powerholder's estate to the extent provided in the Uniform Fraudulent Transfer Act.

(c)Subject to subsection (b), appointive property subject to a general power of appointment created by the powerholder is not subject to a claim of a creditor of the powerholder or the powerholder's estate to the extent the powerholder irrevocably appointed the property in favor of a person other than the powerholder or the powerholder's estate.

(d)Subject to subsections

(b)and (c), and notwithstanding the presence of a spendthrift provision or whether the claim arose before or after the creation of the power of appointment, appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of:

(1)the powerholder, to the same extent as if the powerholder owned the appointive

property, if the power is presently exercisable; and

(2)the powerholder's estate, to the extent the estate is insufficient to satisfy the

claim and subject to the right of a decedent to direct the source from which liabilities are paid, if the power is exercisable at the powerholder's death.