N.C. Gen. Stat. § 31D-1-101
Short title
Short title. This Chapter may be cited as the North Carolina Uniform Powers of Appointment Act. (2015-205, s. 3(a).)
North Carolina General Statutes Chapter 31D — Chapter 31D.
North Carolina · statute · N.C. Gen. Stat. ch. 31D · 40 active provisions
Provisions
N.C. Gen. Stat. § 31D-1-102
Definitions
Definitions. The following definitions apply in this Chapter: (1) "Appointee" means a person to whom a power holder 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 clause in an instrum…
N.C. Gen. Stat. § 31D-1-103
Governing law
Governing law. (a) The creation, revocation, or amendment of the power of appointment is governed by either of the following: (1) The law of the jurisdiction designated in the terms of the instrument creating the power. (2) If no jurisdiction's law is designated in the terms of the instrument creating the power or if t…
N.C. Gen. Stat. § 31D-1-104
Common law and principles of equity
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 another statute of this State. (2015-205, s. 3(a).) Article 2. Creation, Revocation, and Amendment of Power of Appointment.
N.C. Gen. Stat. § 31D-2-201
Creation of power of appointment
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 (2) Repealed by Session Laws 2021-53, s. 4.1, effective June 25, 2021.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…
N.C. Gen. Stat. § 31D-2-202
Nontransferability
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).)
N.C. Gen. Stat. § 31D-2-203
Presumption of unlimited authority
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.…
N.C. Gen. Stat. § 31D-2-204
Exception to presumption of unlimited authority
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…
N.C. Gen. Stat. § 31D-2-205
Rules of classification
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…
N.C. Gen. Stat. § 31D-2-206
Power to revoke or amend
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…
N.C. Gen. Stat. § 31D-3-301
Requisites for exercise of power of appointment
Requisites for exercise of power of appointment. A power of appointment is exercised only to the extent that the appointment is a permissible exercise of the power, and 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 t…
N.C. Gen. Stat. § 31D-3-302
Intent to exercise; determining intent from residuary clause
Intent to exercise; determining intent from residuary clause. A residuary clause that does not contain a blanket-exercisable clause or specific-exercise clause manifests the power holder's intent to exercise a power of appointment only if all of the following apply: (1) The terms of the instrument containing the residu…
N.C. Gen. Stat. § 31D-3-303
Intent to exercise after-acquired power
Intent to exercise after-acquired power. Unless the terms of an instrument exercising a power of appointment manifest a contrary intent: (1) If the power holder is not also the donor of the power, a blanket-exercise clause in the instrument extends to a power acquired by the power holder after executing the instrument…
N.C. Gen. Stat. § 31D-3-304
Substantial compliance with donor-imposed formal requirement
Substantial compliance with donor-imposed formal requirement. A power holder'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 reference to the power, is sufficient if both of…
N.C. Gen. Stat. § 31D-3-305
Permissible appointment
Permissible appointment. (a) If a power holder of a general power of appointment permits appointment to the power holder or the power holder's estate, the power holder may make any appointment, including an appointment in trust or an appointment that creates a new power of appointment that the power holder could make i…
N.C. Gen. Stat. § 31D-3-306
Appointment to deceased appointee
Appointment to deceased appointee. An appointment to a deceased appointee is ineffective. (2015-205, s. 3(a).)
N.C. Gen. Stat. § 31D-3-307
Impermissible appointment
Impermissible appointment. (a) An exercise of a power of appointment in favor of an impermissible appointee is ineffective. (b) An exercise of a power of appointment in favor of a permissible appointee is ineffective to the extent that the appointment is a fraud on the power. (2015-205, s. 3(a).)
N.C. Gen. Stat. § 31D-3-308
Selective allocation doctrine
Selective allocation doctrine. If a power holder exercises a power of appointment in a disposition that also disposes of property the power holder owns, the owned property and the appointive property must be allocated in the permissible manner that best carries out the power holder's intent. (2015-205, s. 3(a).)
N.C. Gen. Stat. § 31D-3-309
Capture doctrine; disposition of ineffectively appointed property under general power
Capture doctrine; disposition of ineffectively appointed property under general power. To the extent a power holder of a general power of appointment, other than a power to withdraw property from, revoke, or amend a trust, makes an ineffective appointment: (1) The gift-in-default clause controls the disposition of the…
N.C. Gen. Stat. § 31D-3-310
Disposition of unappointed property under released or unexercised general power
Disposition of unappointed property under released or unexercised general power. (a) To the extent that a power holder releases a general power of appointment other than a power to withdraw property from, revoke, or amend a trust, the gift-in-default clause controls the disposition of the unappointed property. If there…
N.C. Gen. Stat. § 31D-3-311
Disposition of unappointed property under released or unexercised nongeneral power
Disposition of unappointed property under released or unexercised nongeneral power. To the extent that a power holder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment: (1) The gift-in-default clause controls the disposition of the unappointed property. (2) If there is no gift-in…
N.C. Gen. Stat. § 31D-3-312
Disposition of unappointed property if partial appointment to taker in default
Disposition of unappointed property if partial appointment to taker in default. Unless the terms of the instrument creating or exercising a power of appointment manifest a contrary intent, if the power holder makes a valid partial appointment to a taker in default of appointment, then the taker in default of appointmen…
N.C. Gen. Stat. § 31D-3-313
Appointment to taker in default
Appointment to taker in default. If a power holder makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-in-default clause had the property not been appointed, then the power of appointment is deemed not to have been exercised and the appointee takes unde…
N.C. Gen. Stat. § 31D-3-314
Power holder's authority to revoke or amend exercise
Power holder's authority to revoke or amend exercise. If the terms of an instrument creating a power of appointment do not prohibit the power holder from revoking or amending an exercise of the power, a power holder may revoke or amend the exercise of a power only if one of the following apply: (1) The instrument creat…
N.C. Gen. Stat. § 31D-4-401
Disclaimer
Disclaimer. Consistent with Chapter 31B of the General Statutes: (1) A power holder may disclaim all or part of a power of appointment. (2) A permissible appointee, appointee, or taker in default of appointment may disclaim all or part of an interest in appointive property. (2015-205, s. 3(a).)
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