\n(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 is no gift-in-default clause or to the extent that the clause is ineffective, the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.\n(b) To the extent a power holder fails to exercise 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 is no gift-in-default clause or to the extent the clause is ineffective, the unappointed property passes as follows:\n(1) To the power holder if the power holder is a permissible appointee and living.\n(2) If the power holder is an impermissible appointee or deceased, to the power holder's estate if the estate is a permissible appointee.\n(3) If the power holder is an impermissible appointee or deceased and if ower holder is an impermissible appointee or deceased, to the power holder's estate if the estate is a permissible appointee.\n(3) If the power holder is an impermissible appointee or deceased and if the estate is not a permissible appointee, under a reversionary interest to the donor or the donor's transferee or successor in interest. (2015-205, s. 3(a).)
North Carolina Legal Code