702.305(3)(a)
(a) Make an appointment in any form, including an appointment in trust, in favor of a permissible appointee.
702.305(3)(b)
(b) Create a general or nongeneral power of appointment in a permissible appointee that may be exercisable in favor of persons other than permissible appointees of the original nongeneral power of appointment.
702.305(3)(c)
(c) Create a nongeneral power of appointment in any person to appoint to one or more of the permissible appointees of the original nongeneral power of appointment.
702.305 History
History: 2023 a. 127.
702.306
702.306
Appointment to a deceased appointee. Subject to s.
854.06, an exercise of a power of appointment is ineffective to the extent it is in favor of a deceased appointee.
702.306 History
History: 2023 a. 127.
702.307
702.307
Impermissible appointment. 702.307(1)(1)
Except as otherwise provided in s.
702.306, an exercise of a power of appointment is ineffective to the extent it is in favor of an impermissible appointee.
702.307 History
History: 2023 a. 127.
702.307(2)
(2) An exercise of a power of appointment in favor of a permissible appointee is ineffective to the extent the appointment is a fraud on the power.
702.307 History
History: 2023 a. 127.
702.308
702.308
Selective allocation doctrine. If a powerholder exercises a power of appointment in a disposition that also disposes of property the powerholder owns, the owned property and the appointive property must be allocated in the permissible manner that best carries out the powerholder's intent.
702.308 History
History: 2023 a. 127.
702.309
702.309
Capture doctrine: disposition of ineffectively appointed property under general power. 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, all of the following apply:
702.309(1)
(1) The gift-in-default clause controls the disposition of the ineffectively appointed property.
702.309(2)(a)(a) If there is no gift-in-default clause or to the extent the gift-in-default clause is ineffective, the ineffectively appointed property passes to one of the following:
702.309(2)(a)1.
1. If the powerholder is a permissible appointee and living, the powerholder.
702.309(2)(a)2.
2. If the powerholder is an impermissible appointee or deceased, the powerholder's estate if the estate is a permissible appointee.
702.309(2)(b)
(b) If there is no taker under par.
(a), the ineffectively appointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.
702.309 History
History: 2023 a. 127.
702.310
702.310
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, all of the following apply:
702.310(1)
(1) The gift-in-default clause controls the disposition of the unappointed property.
702.310(2)(a)(a) If there is no gift-in-default clause or to the extent the gift-in-default clause is ineffective, except as otherwise provided in par.
(b), the unappointed property passes to any of the following:
702.310(2)(a)1.
1. If the powerholder is a permissible appointee and living, the powerholder.
702.310(2)(a)2.
2. If the powerholder is an impermissible appointee or deceased, the powerholder's estate if the estate is a permissible appointee.
702.310(2)(b)
(b) To the extent the powerholder released the power, or if there is no taker under par.
(a), the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.
702.310 History
History: 2023 a. 127.
702.311
702.311
Disposition of unappointed property under released or unexercised nongeneral power of appointment. To the extent a powerholder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment, all of the following apply:
702.311(1)
(1) The gift-in-default clause controls the disposition of the unappointed property.
702.311(2)(a)(a) If there is no gift-in-default clause or to the extent the gift-in-default clause is ineffective, the unappointed property passes to the permissible appointees if all of the following apply:
702.311(2)(a)2.
2. The terms of the instrument creating the power do not manifest a contrary intent.
702.311(2)(b)
(b) If there is no taker under par.
(a), the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.
702.311 History
History: 2023 a. 127.
702.312
702.312
Disposition of unappointed property if partial appointment to taker in default. Unless the terms of an instrument creating or exercising a power of appointment manifest a contrary intent, if the powerholder makes a valid partial appointment to a taker in default of appointment, the taker in default of appointment may share fully in unappointed property.
702.312 History
History: 2023 a. 127.
702.313
702.313
Appointment to taker in default. If a powerholder makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-in-default clause had the property not been appointed, the power of appointment is considered not to have been exercised and the appointee takes under the gift-in-default clause.
702.313 History
History: 2023 a. 127.
702.314
702.314
Powerholder's authority to revoke or amend exercise. A powerholder may revoke or amend an exercise of a power of appointment only to the extent that any of the following applies:
702.314(1)
(1) The powerholder reserves a power of revocation or amendment in the instrument exercising the power of appointment and, if the power is a nongeneral power of appointment, the terms of the instrument creating the power of appointment do not prohibit the reservation.
702.314(2)
(2) The terms of the instrument creating the power of appointment provide that the exercise of the power of appointment is revocable or amendable.
702.314 History
History: 2023 a. 127.
702.315
702.315
Presumption of nonexercise of a power of appointment. 702.315(1)(1)
A personal representative, trustee, or other fiduciary who holds property subject to a power of appointment may administer that property as if the power of appointment was not exercised if the personal representative, trustee, or other fiduciary has no notice of the existence of any of the following within 6 months after the death of the powerholder:
702.315(1)(a)
(a) A document purporting to be a will of the powerholder if the power of appointment is exercised by the will.
702.315(1)(b)
(b) Other documentation of the powerholder purporting to exercise the power of appointment if the power of appointment is exercisable other than by a will.
702.315(2)
(2) A personal representative, trustee, or other fiduciary who acts in good faith is not liable to any person for administering property as if a power of appointment was not exercised as provided in sub.
(1).
702.315 History
History: 2023 a. 127.
DISCLAIMER OR RELEASE; CONTRACT
TO APPOINT OR NOT TO APPOINT
702.401(1)(1)
A powerholder may disclaim all or part of a power of appointment as provided under ss.
700.27 and
854.13.
702.401(2)
(2) A permissible appointee, appointee, or taker in default of appointment may disclaim all or part of an interest in appointive property, as provided under ss.
700.27 and
854.13.
702.401 History
History: 2023 a. 127.
702.402
702.402
Authority to release. A powerholder may release a power of appointment, in whole or in part, except to the extent the terms of the instrument creating the power prevent the release.
702.402 History
History: 2023 a. 127.
702.403
702.403
Method of release. A powerholder of a releasable power of appointment may release the power in whole or in part by any of the following methods:
702.403(1)
(1) Substantial compliance with a method provided in the terms of the instrument creating the power.
702.403(2)
(2) If the terms of the instrument creating the power do not provide a method, a writing that manifests the powerholder's intent by clear and convincing evidence.
702.403 History
History: 2023 a. 127.
702.404
702.404
Revocation of amendment of release. A powerholder may revoke or amend a release of a power of appointment only to the extent that any of the following applies:
702.404(1)
(1) The instrument of release is revocable by the powerholder.
702.404(2)
(2) The powerholder reserves a power of revocation or amendment in the instrument of release.
702.404 History
History: 2023 a. 127.
702.405
702.405
Power to contract: presently exercisable power of appointment. A powerholder of a presently exercisable power of appointment may contract to do any of the following:
702.405(2)
(2) To exercise the power if the contract when made does not confer a benefit on an impermissible appointee.
702.405 History
History: 2023 a. 127.
702.406
702.406
Power to contract: power of appointment not presently exercisable. A powerholder of a power of appointment that is not presently exercisable may contract to exercise or not to exercise the power only if all of the following apply:
702.406(1)
(1) The powerholder is also the donor of the power.
702.406(2)
(2) The powerholder reserved the power in a revocable trust.
702.406 History
History: 2023 a. 127.
702.407
702.407
Remedy for breach of contract to appoint or not to appoint. The remedy for a powerholder's breach of a contract to appoint or not to appoint appointive property is limited to damages payable out of the appointive property or, if appropriate, specific performance of the contract.
702.407 History
History: 2023 a. 127.
RIGHTS OF POWERHOLDER'S CREDITORS
IN APPOINTIVE PROPERTY
702.501
702.501
Creditor claim: general power created by powerholder. 702.501(1)(1)
In this section, “power of appointment created by the powerholder” includes a power of appointment created in a transfer by another person to the extent the powerholder contributed value to the transfer.
702.501(2)
(2) Appointive property subject to a general power of appointment created by a powerholder is subject to a claim of a creditor of the powerholder or of the powerholder's estate to the extent provided in ch.
242 and any other applicable law relating to fraudulent conveyances.
702.501(3)
(3) Subject to sub.
(2), appointive property subject to a general power of appointment created by a powerholder is not subject to a claim of a creditor of the powerholder or the powerholder's estate to the extent the powerholder irrevocably appointed the property in favor of a person other than the powerholder or the powerholder's estate.
702.501(4)
(4) Subject to subs.
(2) and
(3), and notwithstanding the presence of a spendthrift provision or whether the claim arose before or after the creation of the power of appointment, appointive property subject to a general power of appointment created by a powerholder is subject to a claim of a creditor of any of the following:
702.501(4)(a)
(a) If the power of appointment is a presently exercisable power of appointment, the powerholder, to the same extent as if the powerholder owned the appointive property.
702.501(4)(b)
(b) If the power of appointment is exercisable at the powerholder's death, the powerholder's estate, to the extent the estate is insufficient to satisfy the claim and subject to the right of a decedent to direct the source from which liabilities are paid.
702.501 History
History: 2023 a. 127.
702.502
702.502
Creditor claim: general power not created by powerholder. 702.502(1)(1)
Except as otherwise provided in sub.
(2), appointive property subject to a general power of appointment created by a person other than the powerholder is subject to a claim of a creditor of any of the following:
