Chapter 702 — UNIFORM POWERS OF APPOINTMENT ACT

702.101 Short title. This act may be cited as the Uniform Powers of Appointment Act. History: 2023 a. 127.

702.102 Definitions. In this chapter: (1) “Appointee” means a person to which a powerholder 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” means a clau…

702.103 Governing law. Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the creation, revocation, or amendment of a power of appointment is governed by the law of the donor’s domicile at the relevant time. The exercise, release, or di…

702.104 Common law and principles of equity. The common law and principles of equity supplement this chapter, except to the extent modified by this chapter or any other state law. History: 2023 a. 127.

702.105 Default rules. The terms of a governing instrument prevail over any provision of this subchapter. History: 2023 a. 127.

702.201 Creation of power of appointment. (1) A power of appointment is created only if the instrument creating the power satisfies all of the following: (a) The instrument is valid under applicable law. (b) Except as provided in sub. (2), the instrument governs the disposition o…

702.202 Nontransferability. A powerholder may not transfer a power of appointment. If a powerholder dies without exercising or releasing a power of appointment, the power lapses. History: 2023 a. 127. 2

702.203 Presumption of unlimited authority. Subject to ss. 702.204 and 702.205, and unless the terms of the instrument creating a power of appointment manifest a contrary intent, a power of appointment is all of the following: (1) A presently exercisable power of appointment. (2)…

702.204 Exception to presumption of unlimited authority. Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is a nongeneral power of appointment if all of the following apply: (1) The power is exercisable only at the powerhold…

702.205 Rules of classification. (1) In this section, “adverse party” means a person with a substantial beneficial interest in appointive property that would be affected adversely by a powerholder’s exercise or nonexercise of a power of appointment in favor of the powerholder, th…

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

702.301 Requisites for exercise of power of appointment. (1) (a) A power of appointment is exercised 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 do all of the followi…

702.302 Intent to exercise: determining intent from residuary clause. (1) In this section: (a) “Residuary clause” does not include a residuary clause containing a blanket-exercise clause or a specific-exercise clause. (b) “Will” includes a codicil and a testamentary instrument th…

702.303 Intent to exercise: after-acquired power. Unless the terms of the instrument exercising a power of appointment manifest a contrary intent, all of the following apply: (1) Except as otherwise provided in sub. (2), a blanket-exercise clause extends to a power of appointment…

702.304 Substantial compliance with donor-imposed formal requirement. A powerholder’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 r…

702.305 Permissible appointment. (1) A powerholder of a general power of appointment that permits appointment to the powerholder or the powerholder’s estate may make any appointment, including an appointment in trust or creating a new 702.310 power of appointment, that the powerh…

702.306 Appointment to a deceased appointee. Subject to s. 854.06, an exercise of a power of appointment is ineffective to the extent it is in favor of a deceased appointee. History: 2023 a. 127.

702.307 Impermissible appointment. (1) Except as otherwise provided in s. 702.306, an exercise of a power of appointment is ineffective to the extent it is in favor of an impermissible appointee. History: 2023 a. 127. (2) An exercise of a power of appointment in favor of a permis…

702.308 Selective allocation doctrine. If a powerholder exercises a power of appointment in a disposition that also disposes of property the powerholder owns, the owned property and the appointive property must be allocated in the permissible manner that best carries out the powe…

702.309 Capture doctrine: disposition of ineffectively appointed property under general power. To the extent a powerholder of a general power of appointment, other than a power to withdraw property from, revoke, or amend a trust, makes an ineffective appointment, all of the follo…

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: Ma…

702.311 Disposition of unappointed property under released or unexercised nongeneral power of appointment.

702.312 Disposition of unappointed property if partial appointment to taker in default.

702.313 Appointment to taker in default.

702.314 Powerholder’s authority to revoke or amend exercise.

702.315 Presumption of nonexercise of a power of appointment. SUBCHAPTER IV DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO APPOINT

702.401 Disclaimer.

702.402 Authority to release.

702.403 Method of release.

702.404 Revocation of amendment of release.

702.405 Power to contract: presently exercisable power of appointment.

702.406 Power to contract: power of appointment not presently exercisable.

702.407 Remedy for breach of contract to appoint or not to appoint. SUBCHAPTER V RIGHTS OF POWERHOLDER’S CREDITORS IN APPOINTIVE PROPERTY

702.501 Creditor claim: general power created by powerholder.

702.502 Creditor claim: general power not created by powerholder.

702.503 Power to withdraw.

702.504 Creditor claim: nongeneral power of appointment.

702.505 Third parties in good faith protected. SUBCHAPTER VI MISCELLANEOUS PROVISIONS

702.601 Recording instruments relating to a power of appointment.

702.602 Uniformity of application and construction.

702.603 Relation to electronic signatures in global and national commerce act.

702.604 Applicability. (7) “General power of appointment” means a power of appointment exercisable in favor of the powerholder, the powerholder’s estate, a creditor of the powerholder, or a creditor of the powerholder’s estate. (8) “Gift-in-default clause” means a clause that ide…