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.

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: (1…

702.311 Disposition of unappointed property under released or unexercised nongeneral power of appointment. To the extent a powerholder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment, all of the following apply: (1) The gift-in-default cl…

702.312 Disposition of unappointed property if partial appointment to taker in default. SUBCHAPTER IV DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO APPOINT SUBCHAPTER V RIGHTS OF POWERHOLDER’S CREDITORS IN APPOINTIVE PROPERTY SUBCHAPTER VI MISCELLANEOUS PROVISIONS

702.313 Appointment to taker in default. If a powerholder makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-indefault clause had the property not been appointed, the power of appointment is considered not to hav…

702.314 Powerholder’s authority to revoke or amend exercise. A powerholder may revoke or amend an exercise of a power of appointment only to the extent that any of the following applies: (1) The powerholder reserves a power of revocation or amendment in the instrument exercising …

702.315 Presumption of nonexercise of a power of appointment. (1) A personal representative, trustee, or other fiduciary who holds property subject to a power of appointment may administer that property as if the power of appointment was not exercised if the personal representati…

702.401 Disclaimer. (1) A powerholder may disclaim all or part of a power of appointment as provided under ss. 700.27 and 854.13. (2) A permissible appointee, appointee, or taker in default of appointment may disclaim all or part of an interest in appointive property, as provided…

702.402 Authority to release. A powerholder may release a power of appointment, in whole or in part, except to the extent the terms of the instrument creating the power prevent the release. History: 2023 a. 127.

702.403 Method of release. A powerholder of a releasable power of appointment may release the power in whole or in part by any of the following methods: (1) Substantial compliance with a method provided in the terms of the instrument creating the power. (2) If the terms of the in…

702.404 Revocation of amendment of release. A powerholder may revoke or amend a release of a power of appointment only to the extent that any of the following applies: (1) The instrument of release is revocable by the powerholder. (2) The powerholder reserves a power of revocatio…

702.405 Power to contract: presently exercisable power of appointment. A powerholder of a presently exercisable power of appointment may contract to do any of the following: (1) Not to exercise the power. (2) To exercise the power if the contract when made does not confer a benef…

702.406 Power to contract: power of appointment not presently exercisable. A powerholder of a power of appointment that is not presently exercisable may contract to exercise or not to exercise the power only if all of the following apply: (1) The powerholder is also the donor of …

702.407 Remedy for breach of contract to appoint or not to appoint. The remedy for a powerholder’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 co…

702.501 Creditor claim: general power created by powerholder. (1) In this section, “power of appointment created by the powerholder” includes a power of appointment created in a transfer by another person to the extent the powerholder contributed value to the transfer. (2) Appoin…

702.502 Creditor claim: general power not created by powerholder. (1) Except as otherwise provided in sub. (2), appointive property subject to a general power of appointment created by a person other than the powerholder is subject to a claim of a creditor of any of the following…

702.503 Power to withdraw. (1) For purposes of this subchapter, and except as otherwise provided in sub. (2), a power to withdraw property from a trust is considered, during the time the power may be exercised, as a presently exercisable general power of appointment to the extent…

702.504 Creditor claim: nongeneral power of appointment. (1) Except as otherwise provided in subs. (2) and (3), appointive property subject to a nongeneral power of appointment is exempt from a claim of a creditor of the powerholder or the powerholder’s estate. (2) Appointive pro…

702.505 Third parties in good faith protected. Any person acting without actual notice of claims of creditors under this subchapter incurs no liability to those creditors for transferring property that is subject to a power of appointment or that has been appointed. A purchaser w…

702.601 Recording instruments relating to a power of appointment. (1) Each of the following instruments relating to a power of appointment is entitled to be recorded as a conveyance upon compliance with s. 706.05 (1): (a) An instrument, other than a will, exercising a power of ap…

702.602 Uniformity of application and construction. In applying and construing this section, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. History: 2023 a. 127.

702.603 Relation to electronic signatures in global and national commerce act. (1) Except as provided in sub. (2), this chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 USC 7001, et seq. 702.604 Applicability. (1) …

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…