Disposition of unappointed property under released or unexercised general power

702.310 Disposition of unappointed property under released or unexercised general power. To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to withdraw property from, revoke, or amend a trust, all of the following apply: (1) The gift-in-default clause controls the disposition of the unappointed property. (2) (a) If there is no gift-in-default clause or to the extent the gift-in-default clause is ineffective, except as otherwise provided in par. (b), the unappointed property passes to any of the following: 1. If the powerholder is a permissible appointee and living, the powerholder. 2. If the powerholder is an impermissible appointee or deceased, the powerholder’s estate if the estate is a permissible appointee. (b) To the extent the powerholder released the power, or if there is no taker under par. (a), the unappointed property passes under a reversionary interest to the donor or the donor’s transferee or successor in interest. History: 2023 a. 127.