Section 31D-3-309 - Capture doctrine; disposition of ineffectively appointed property under general powerTo the extent a power holder of a general power of appointment, other than a power to withdraw property from, revoke, or amend a trust, makes an ineffective appointment:
(1) The gift-in-default clause controls the disposition of the ineffectively appointed property.(2) If there is no gift-in-default clause or to the extent the clause is ineffective, the ineffectively appointed property passes as follows:a. To the power holder if the power holder is a permissible appointee and living.b. If the power holder is an impermissible appointee or deceased, to the power holder's estate if the estate is a permissible appointee.c. If the power holder is an impermissible appointee or deceased and if the estate is not a permissible appointee, under a reversionary interest to the donor or the donor's transferee or successor in interest.N.C. Gen. Stat. § 31D-3-309
Added by 2015 N.C. Sess. Laws 205,s. 3-a, eff. 8/11/2015.