§ 19-1703.10. Disposition of unappointed property under released or unexercised general power.

(a) 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: (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 subparagraph (B) of this paragraph, the unappointed property passes to: (i) The powerholder if the powerholder is a permissible appointee and living; or (ii) If the powerholder is an impermissible appointee or deceased, 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 subparagraph (A) of this paragraph, the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.