\nTo the extent that a power holder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment:\n(1) The gift-in-default clause controls the disposition of the unappointed property.\n(2) If there is no gift-in-default clause, or to the extent that the clause is ineffective, the unappointed property:\na. Passes to the permissible appointees, if both of the following apply:\n1. The permissible appointees are defined and limited.\n2. The terms of the instrument creating the power do not manifest a contrary intent.\nb. If there is no taker under sub-subdivision a. of this subdivision, passes 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