Section 456.990

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY

Chapter 456

Effective - 28 Aug 2016   

  456.990.  Creations of power of appointment. — 1.  A power of appointment is created only if:

  (1)  The instrument creating the power:

  (a)  Is valid under applicable law; and

  (b)  Except as otherwise provided in subsection 2 of this section transfers the appointive property; and

  (2)  The terms of the instrument creating the power manifest the donor's intent to create in a powerholder a power of appointment over the appointive property exercisable in favor of a permissible appointee.

  2.  Paragraph (b) of subdivision (1) of subsection 1 of this section does not apply to the creation of a power of appointment by the exercise of a power of appointment.

  3.  Power of appointment may not be created in a deceased individual.

  4.  Subject to an applicable rule against perpetuities, a power of appointment may be created in an unborn or unascertained powerholder.

  5.  Any property that is the subject of an invalid power of appointment shall be transferred, held or otherwise disposed of in accordance with the valid provisions of the instrument attempting to create the power, if any such provisions exist, or if none, in accordance with other applicable laws, as the case may be.

­­--------

(L. 2016 H.B. 1765)