Creation Of Power Of Appointment

(1) A power of appointment is created only if: (a) the instrument creating the power: (i) is valid under applicable law; and (ii) except as otherwise provided in subsection (2), transfers the appointive property; and (b) the terms of the instrument creating the power manifest the donor's intent to create in a powerholder a power of appointment over the appointive property exercisable in favor of a permissible appointee. (2) Subsection (1)(a)(ii) does not apply to the creation of a power of appointment by the exercise of a power of appointment. (3) A power of appointment may not be created in a deceased individual. (4) Subject to an applicable rule against perpetuities, a power of appointment may be created in an unborn or unascertained powerholder.