Disposition of unappointed property under released or unexercised general power.

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 paragraph (b), 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 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 paragraph (a), the unappointed property passes under a reversionary interest to the donor or the donor’s transferee or successor in interest. (Added to NRS by 2017, 1376)