To the extent a powerholder of a general power of appointment, other than a power to withdraw property from, revoke or amend a trust, makes an ineffective appointment: A. the gift-in-default clause controls the disposition of the ineffectively appointed property; or B. if there is no gift-in-default clause or to the extent the clause is ineffective, the ineffectively appointed property: (1) passes to: (a) the powerholder if the powerholder is a permissible appointee and is living; or (b) if the powerholder is an impermissible appointee or deceased, the powerholder's estate if the estate is a permissible appointee; or (2) if there is no taker under Paragraph (1) of this subsection, passes under a reversionary interest to the donor or the donor's transferee or successor in interest. History: Laws 2016, ch. 69, § 309. ANNOTATIONSEffective dates. — Laws 2016, ch. 69, § 727B made Laws 2016, ch. 69, §§ 101 through 603 and 724 effective January 1, 2017.
New Mexico Legal Code