To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to revoke, amend, or withdraw property from a trust: (1) The gift-in-default clause controls the disposition of the unappointed property; or (2) If there is no gift-in-default clause or to the extent the clause is ineffective: (a) Except as otherwise provided in paragraph (b) of this subsection, the unappointed property passes to: 1. The powerholder if the powerholder is a permissible appointee and living; or 2. If the powerholder is an impermissible appointee or not living, the powerholder's estate if the estate is a permissible appointee; or (b) To the extent the powerholder released the power, or if there is no taker under paragraph (a) of this subsection, the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.
‹ Prev All Kentucky sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.