§ 41-16. When nonvested property interest or power of appointment created.
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/nc/chapter-41/41-16A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 41-16. When nonvested property interest or power of appointment created.
(a)Except as provided in subsections
(b)and
(c)of this section and in G.S. 41-19(a), the time for creation of a nonvested property interest or a power of appointment is determined under general principles of property law.
(b)For purposes of this Article, if there is a person who alone can exercise a power created by a governing instrument to become the unqualified beneficial owner of
(i)a nonvested property interest or
(ii)a property interest subject to a power of appointment described in G.S. 41-15(b) or (c), the nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates.
(c)For purposes of this Article, a nonvested property interest or a power of appointment arising from a transfer of property to a previously funded trust or other existing property arrangement is created when the nonvested property interest or power of appointment in the original contribution was created. (1995, c. 190, s. 1.)