Section 31D-3-310 - Disposition of unappointed property under released or unexercised general power(a) To the extent that a power holder releases a general power of appointment other than a power to withdraw property from, revoke, or amend a trust, the gift-in-default clause controls the disposition of the unappointed property. If there is no gift-in-default clause or to the extent that the clause is ineffective, the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.(b) To the extent a power holder fails to exercise a general power of appointment other than a power to withdraw property from, revoke, or amend a trust, the gift-in-default clause controls the disposition of the unappointed property. If there is no gift-in-default clause or to the extent the clause is ineffective, the unappointed property passes as follows:(1) To the power holder if the power holder is a permissible appointee and living.(2) If the power holder is an impermissible appointee or deceased, to the power holder's estate if the estate is a permissible appointee.(3) 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-3-310
Added by 2015 N.C. Sess. Laws 205,s. 3-a, eff. 8/11/2015.