Code of Virginia § 64.2-2735. Creditor claim; general power created by powerholder.

257 words·~1 min read·/va/title-64-2/chapter-27/64-2-2735

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

A. As used 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 that 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 Chapter 4 (§ 55.1-400 et seq.) of Title 55.1.

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 that 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 that 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.

2016, c. 266 .