Chapter 31D

This Chapter may be cited as the North Carolina Uniform Powers of Appointment Act. (2015-205, s. 3(a).)

The following definitions apply in this Chapter: (1) "Appointee" means a person to whom a power holder makes an appointment of appointive property. (2) "Appointive property" means the property or property interest subject to a power of appointment. (3) "Blanket-exercise clause" m…

(a) The creation, revocation, or amendment of the power of appointment is governed by either of the following: (1) The law of the jurisdiction designated in the terms of the instrument creating the power. (2) If no jurisdiction's law is designated in the terms of the instrument c…

The common law and principles of equity supplement this Chapter, except to the extent modified by this Chapter or another statute of this State. (2015-205, s. 3(a).)

(a) A power of appointment is created only if all of the following apply: (1) The instrument creating the power is valid under applicable law. (2) Repealed by Session Laws 2021-53, s. 4.1, effective June 25, 2021. (3) The terms of the instrument creating the power manifest the do…

A power holder may not transfer a power of appointment. If a power holder dies without exercising or releasing a power, the power lapses. (2015-205, s. 3(a).)

Subject to the provisions of G.S. 31D-2-205, and unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is all of the following: (1) Presently exercisable. (2) Exclusionary. (3) Except as otherwise provided in G.S. 31D-2-204, gene…

Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is nongeneral if both of the following apply: (1) The power is exercisable only at the power holder's death. (2) The permissible appointees of the power are a defined and limi…

(a) In this section, the term "adverse party" means a person with a substantial beneficial interest in property who would be affected adversely by a power holder's exercise or nonexercise of a power of appointment in favor of the power holder, the power holder's estate, a credito…

A donor may revoke or amend a power of appointment only to the extent that either of the following apply: (1) The instrument creating the power is revocable by the donor. (2) The donor reserves a power of revocation or amendment in the instrument creating the power of appointment…

A power of appointment is exercised only to the extent that the appointment is a permissible exercise of the power, and only if all of the following apply: (1) The instrument exercising the power is valid under applicable law. (2) The terms of the instrument exercising the power …

A residuary clause that does not contain a blanket-exercisable clause or specific-exercise clause manifests the power holder's intent to exercise a power of appointment only if all of the following apply: (1) The terms of the instrument containing the residuary clause (including …

Unless the terms of an instrument exercising a power of appointment manifest a contrary intent: (1) If the power holder is not also the donor of the power, a blanket-exercise clause in the instrument extends to a power acquired by the power holder after executing the instrument c…

A power holder's substantial compliance with a formal requirement of appointment imposed by the donor, including a requirement that the instrument exercising the power of appointment make reference or specific reference to the power, is sufficient if both of the following apply: …

(a) If a power holder of a general power of appointment permits appointment to the power holder or the power holder's estate, the power holder may make any appointment, including an appointment in trust or an appointment that creates a new power of appointment that the power hold…

An appointment to a deceased appointee is ineffective. (2015-205, s. 3(a).)

(a) An exercise of a power of appointment in favor of an impermissible appointee is ineffective. (b) An exercise of a power of appointment in favor of a permissible appointee is ineffective to the extent that the appointment is a fraud on the power. (2015-205, s. 3(a).)

If a power holder exercises a power of appointment in a disposition that also disposes of property the power holder owns, the owned property and the appointive property must be allocated in the permissible manner that best carries out the power holder's intent. (2015-205, s. 3(a)…

To 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 …

(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 e…

To the extent that a power holder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment: (1) The gift-in-default clause controls the disposition of the unappointed property. (2) If there is no gift-in-default clause, or to the extent that the c…

Unless the terms of the instrument creating or exercising a power of appointment manifest a contrary intent, if the power holder makes a valid partial appointment to a taker in default of appointment, then the taker in default of appointment may share fully in unappointed propert…

If a power holder makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-in-default clause had the property not been appointed, then the power of appointment is deemed not to have been exercised and the appointee tak…

If the terms of an instrument creating a power of appointment do not prohibit the power holder from revoking or amending an exercise of the power, a power holder may revoke or amend the exercise of a power only if one of the following apply: (1) The instrument creating the exerci…

Consistent with Chapter 31B of the General Statutes: (1) A power holder may disclaim all or part of a power of appointment. (2) A permissible appointee, appointee, or taker in default of appointment may disclaim all or part of an interest in appointive property. (2015-205, s. 3(a…

A power holder may release a power of appointment, in whole or in part, except to the extent that the terms of the instrument creating the power prevent the release. (2015-205, s. 3(a).)

A power holder of a releasable power of appointment may release the power in whole or in part as follows: (1) By substantial compliance with a method provided in the terms of the instrument creating the power. (2) If the terms of the instrument creating the power do not provide a…

No fiduciary having possession or control of property over which a power of appointment is exercisable shall be bound or affected by any release or limitation of such power without actual notice thereof. (1943, c. 665, s. 4; 2017-102, s. 13(c).)

A power holder may revoke or amend a release of a power of appointment only to the extent that one of the following applies: (1) The instrument of release is revocable by the power holder. (2) The power holder reserves a power of revocation or amendment in the instrument of relea…

A power holder of a presently exercisable power of appointment may contract: (1) Not to exercise the power. (2) To exercise the power if the contract when made does not confer a benefit on an impermissible appointee. (2015-205, s. 3(a).)

A power holder of a power of appointment that is not presently exercisable may contract to exercise or not to exercise the power only if the power holder both: (1) Is also the donor of the power. (2) Has reserved the power in a revocable trust. (2015-205, s. 3(a).)

The remedy for a power holder's breach of a contract to appoint or not to appoint appointive property is limited to damages payable out of the appointive property or, if appropriate, specific performance of the contract. (2015-205, s. 3(a).)

(a) In this section, "power of appointment created by the power holder" includes a power of appointment created in a transfer by another person to the extent the power holder contributed value to the transfer. (b) Appointive property subject to a general power of appointment crea…

(a) Except as otherwise provided in subsection (b) of this section, and only when and to the extent that the power holder exercises the power, appointive property subject to a general power of appointment created by a person other than the power holder is subject to a claim of a …

(a) For purposes of this Article, a power to withdraw property from a trust is treated as a presently exercisable general power of appointment to the extent of the property subject to the power to withdraw. (b) The lapse, release, or waiver of a power to withdraw property from a …

(a) Except as otherwise provided in subsections (b) and (c) of this section, appointive property subject to a nongeneral power of appointment is exempt from a claim of a creditor of the power holder or the power holder's estate. (b) Appointive property subject to a nongeneral pow…

No release of a power of appointment after March 8, 1943, which is made by the owner of the legal title to real property in this State shall be valid as against creditors and purchasers for a valuable consideration until an instrument in writing setting forth the release is execu…

In applying and construing this Chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. (2015-205, s. 3(a).)

This Chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede section 101(c) of 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described i…

(a) Except as otherwise provided in this Chapter, on or after August, 11, 2015: (1) This Chapter applies to a power of appointment created before, on or after August 11, 2015. (2) This Chapter applies to a judicial proceeding concerning a power of appointment commenced on or afte…