Sec. 302. Representation by holders of certain powers.

196 words·~1 min read·/il/chapter-760/act-3/302

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

(a)The holder of a testamentary or a presently exercisable power of appointment that is:

(1)a general power of appointment; or

(2)exercisable in favor of all persons other than the powerholder, the powerholder's estate, a creditor of the powerholder, or a creditor of the powerholder's estate, may represent and bind all persons, including takers in default, whose interests may be eliminated by the exercise of the power.

(b)To the extent there is no conflict of interest between a holder and the persons represented with respect to the particular question or dispute, the holder of a testamentary or presently exercisable power of appointment, other than a power described in subsection (a), may represent and bind all persons, including takers in default, whose interests may be eliminated by the exercise of the power.

(c)Subsection (a), except with respect to a presently exercisable general power of appointment, and subsection

(b)do not apply to:

(1)any matter determined by the court to involve fraud or bad faith by the trustee; or

(2)a power of appointment held by a person while the person is the sole trustee.