Article 2.

Creation, Revocation, and Amendment of Power of Appointment.

§ 31D‑2‑201.  Creation of power of appointment.

(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(2) Repealed by Session Laws 2021‑53, s. 4.1, effective June 25, 2021.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 donor's intent to create in a power holder a power of appointment over the appointive property exercisable in favor of a permissible appointee.

(b) Repealed by Session Laws 2021‑53, s. 4.1, effective June 25, 2021.

(c) A power of appointment may not be created in a deceased individual.

(d) Subject to an applicable rule against perpetuities or restraint on alienation, a power of appointment may be created in an unborn or unascertained power holder. (2015‑205, s. 3(a); 2021‑53, s. 4.1.)

 

§ 31D‑2‑202.  Nontransferability.

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).)

 

§ 31D‑2‑203.  Presumption of unlimited authority.

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, general. (2015‑205, s. 3(a).)

 

§ 31D‑2‑204.  Exception to presumption of unlimited authority.

Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is 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 limited class that does not include the power holder's estate, the power holder's creditors, or the creditors of the power holder's estate. (2015‑205, s. 3(a).)

 

§ 31D‑2‑205.  Rules of classification.

(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 creditor of the power holder, or a creditor of the power holder's estate.

(b) If a power holder may exercise a power of appointment only with the consent or joinder of an adverse party, the power is nongeneral.

(c) If the permissible appointees of a power of appointment are not defined and limited, the power is exclusionary. (2015‑205, s. 3(a).)

 

§ 31D‑2‑206.  Power to revoke or amend.

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. (2015‑205, s. 3(a).)