ENGROSSED ORIGINAL
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A BILL
25-219
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
________________
To amend Title 19 of the District of Columbia Official Code to enact the Uniform Powers of 1
Appointment Act, to provide a statutory framework for the creation, amendment, 2
revocation, and exercise of powers of appointment, including rules governing 3
appointments to deceased or impermissible appointees, disposition of unappointed 4
property, releasing powers of appointment, a powerholder’s ability to revoke or amend an 5
exercise of power, contracts to exercise or not to exercise powers of appointment, and 6
creditors’ claims on appointive property. 7
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 9
act may be cited as the “Uniform Powers of Appointment Act of 2024”. 10
Sec. 2. Title 19 of the District of Columbia Official Code is amended as follows: 11
(a) The table of contents is amended by adding at the end the phrase “17. Uniform 12
Powers of Appointment Code . . . 19-1701.01”. 13
(b) A new chapter 17 is added to read as follows: 14
“CHAPTER 17 15
“UNIFORM POWERS OF APPOINTMENT CODE . 16
“SUBCHAPTER I. GENERAL PROVISIONS. 17
“Section 18
Ҥ 19-1701.01. Short title. 19 ENGROSSED ORIGINAL
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Ҥ 19-1701.02. Definitions. 20
Ҥ 19-1701.03. Governing law. 21
Ҥ 19-1701.04. Common law and principles of equity. 22
“SUBCHAPTER II. CREATION, REVOCATION, AND AMENDMENT OF POWER OF 23
APPOINTMENT. 24
Ҥ 19-1702.01. Creation of power of appointment. 25
Ҥ 19-1702.02. Nontransferability. 26
Ҥ 19-1702.03. Presumption of unlimited authority. 27
Ҥ 19-1702.04. Exception to presumption of unlimited authority. 28
Ҥ 19-1702.05. Rules of classification. 29
Ҥ 19-1702.06. Power to revoke or amend. 30
“SUBCHAPTER III. EXERCISE OF POWER OF APPOINTMENT. 31
Ҥ 19-1703.01. Requisites for exercise of power of appointment. 32
Ҥ 19-1703.02. Intent to exercise: determining intent from residuary clause. 33
Ҥ 19-1703.03. Intent to exercise: after-acquired power. 34
Ҥ 19-1703.04. Substantial compliance with donor-imposed formal requirement. 35
Ҥ 19-1703.05. Permissible appointment. 36
“§ 19-1703.06. Appointment to deceased appointee or permissible appointee’s descendant. 37
Ҥ 19-1703.07. Impermissible appointment. 38
Ҥ 19-1703.08. Selective allocation doctrine. 39 ENGROSSED ORIGINAL
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Ҥ 19-1703.09. Capture doctrine: disposition of ineffectively appointed property under general 40
power. 41
Ҥ 19-1703.10. Disposition of unappointed property under released or unexercised general 42
power. 43
Ҥ 19-1703.11. Disposition of unappointed property under released or unexercised nongeneral 44
power. 45
Ҥ 19-1703.12. Disposition of unappointed property if partial appointment to taker in default. 46
Ҥ 19-1703.13. Appointment to taker in default. 47
“§ 19-1703.14. Powerholder’s authority to revoke or amend exercise. 48
“SUBCHAPTER IV. DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO 49
APPOINT. 50
Ҥ 19-1704.01. Disclaimer. 51
Ҥ 19-1704.02. Authority to release. 52
Ҥ 19-1704.03. Method of release. 53
Ҥ 19-1704.04. Revocation or amendment of release. 54
Ҥ 19-1704.05. Power to contract: presently exercisable power of appointment. 55
Ҥ 19-1704.06. Power to contract: power of appointment not presently exercisable. 56
Ҥ 19-1704.07. Remedy for breach of contract to appoint or not to appoint. 57
“SUBCHAPTER V. RIGHTS OF POWERHOLDER’S CREDITORS IN APPOINTIVE 58
PROPERTY. 59 ENGROSSED ORIGINAL
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Ҥ 19-1705.01. Creditor claim: general power created by powerholder. 60
Ҥ 19-1705.02. creditor claim: general power not created by powerholder. 61
Ҥ 19-1705.03. Power to withdraw. 62
Ҥ 19-1705.04. Creditor claim: nongeneral power. 63
“SUBCHAPTER VI. MISCELLANEOUS PROVISIONS. 64
Ҥ 19-1706.01. Uniformity of application and construction. 65
Ҥ 19-1706.02. Relation to electronic signatures in global and national commerce act. 66
Ҥ 19-1706.03. Application to existing relationships. 67
“SUBCHAPTER I. GENERAL PROVISIONS. 68
Ҥ 19- 1701.01. Short title. 69
“This chapter may be cited as the “ Uniform Powers of Appointment Code ”. 70
Ҥ 19- 1701.02. Definitions. 71
“For the purposes of this chapter, the term: 72
“(1) “Appointee” means a person to which a powerholder makes an appointment 73
of appointive property. 74
“(2) “Appointive property” means the property or property interest subject to a 75
power of appointment. 76
“(3) “Blanket-exercise clause” means a clause in an instrument which exercises a 77
power of appointment and is not a specific-exercise clause. The term “blanket-exercise clause” 78
includes a clause that: 79 ENGROSSED ORIGINAL
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“(A) Expressly uses the words “any power” in exercising any power of 80
appointment the powerholder has; 81
“(B) Expressly uses the words “any property” in appointing any property 82
over which the powerholder has a power of appointment; or 83
“(C) Disposes of all property subject to disposition by the powerholder. 84
“(4) “Donor” means a person that creates a power of appointment. 85
“(5) “Exclusionary power of appointment” means a power of appointment 86
exercisable in favor of any one or more of the permissible appointees to the exclusion of the 87
other permissible appointees. 88
“(6) “General power of appointment” means a power of appointment exercisable 89
in favor of the powerholder, the powerholder’s estate, a creditor of the powerholder, or a creditor 90
of the powerholder’s estate. 91
“(7) “Gift-in-default clause” means a clause identifying a taker in default of 92
appointment. 93
“(8) “Impermissible appointee” means a person that is not a permissible 94
appointee. 95
“(9) “Instrument” means a writing. 96
“(10) “Nongeneral power of appointment” means a power of appointment that is 97
not a general power of appointment. 98 ENGROSSED ORIGINAL
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“(11) “Permissible appointee” means a person in whose favor a powerholder may 99
exercise a power of appointment. 100
“(12) “Person” means an individual, estate, trust, business or nonprofit entity, 101
public corporation, government or governmental subdivision, agency, or instrumentality, or other 102
legal entity. 103
“(13) “Power of appointment” means a power that enables a powerholder acting 104
in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of 105
appointment over the appointive property. The term “power of appointment” does not include a 106
power of attorney. 107
“(14) “Powerholder” means a person in which a donor creates a power of 108
appointment. 109
“(15)(A) “Presently exercisable power of appointment” means a power of 110
appointment exercisable by the powerholder at the relevant time. 111
“(B) The term “presently exercisable power of appointment” includes a 112
power of appointment not exercisable until the occurrence of a specified event, the satisfaction of 113
an ascertainable standard, or the passage of a specified time only after: 114
“(i) The occurrence of the specified event; 115
“(ii) The satisfaction of the ascertainable standard; or 116
“(iii) The passage of the specified time. 117 ENGROSSED ORIGINAL
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“(C) The term “presently exercisable power of appointment” does not 118
include a power of appointment exercisable only at the powerholder’s death. 119
“(16) “Specific- exercise clause” means a clause in an instrument which 120
specifically refers to and exercises a particular power of appointment. 121
“(17) “Taker in default of appointment” means a person that takes all or part of 122
the appointive property to the extent the powerholder does not effectively exercise the power of 123
appointment. 124
“(18) “Terms of the instrument” means the manifestation of the intent of the 125
maker of the instrument regarding the instrument’s provisions as expressed in the instrument or 126
as may be established by other evidence that would be admissible in a legal proceeding. 127
Ҥ 19- 1701.03. Governing law. 128
“Unless the terms of the instrument creating a power of appointment manifest a contrary 129
intent, the law of the powerholder’s domicile at the relevant time governs: 130
“(1) The creation, revocation, or amendment of the power is governed by the law 131
of the donor’s domicile at the relevant time; and 132
“(2) The exercise, release, or disclaimer of the power, or the revocation or 133
amendment of the exercise, release, or disclaimer of the power, is governed by the law of the 134
powerholder’s domicile at the relevant time. 135
Ҥ 19- 1701.04. Common law and principles of equity. 136 ENGROSSED ORIGINAL
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“The common law and principles of equity supplement this chapter, except to the extent 137
modified by this chapter or law of the District of Columbia other than this chapter. 138
“SUBCHAPTER II. CREATION, REVOCATION, AND AMENDMENT OF POWER OF 139
APPOINTMENT. 140
Ҥ 19- 1702.01. Creation of power of appointment. 141
“(a) A power of appointment is created only if: 142
“(1) The instrument creating the power: 143
“(A) Is valid under applicable law; and 144
“(B) Except as otherwise provided in subsection (b) of this section, 145
transfers the appointive property; and 146
“(2) The terms of the instrument creating the power manifest the donor’s intent to 147
create in a powerholder a power of appointment over the appointive property exercisable in favor 148
of a permissible appointee. 149
“(b) Subsection (a)(1)(B) of this section does not apply to the creation of a power of 150
appointment by the exercise of a power of appointment. 151
“(c) A power of appointment may not be created in a deceased individual. 152
“(d) Subject to an applicable rule against perpetuities, a power of appointment may be 153
created in an unborn or unascertained powerholder. 154
Ҥ 19- 1702.02. Nontransferability. 155 ENGROSSED ORIGINAL
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“A powerholder may not transfer a power of appointment. If a powerholder dies without 156
exercising or releasing a power, the power lapses. 157
Ҥ 19- 1702.03. Presumption of unlimited authority. 158
“Subject to § 19- 1702.05, and unless the terms of the instrument creating a power of 159
appointment manifest a contrary intent, the power is: 160
“(1) Presently exercisable; 161
“(2) Exclusionary; and 162
“(3) Except as otherwise provided in § 19- 1702.04, general. 163
Ҥ 19- 1702.04. Exception to presumption of unlimited authority. 164
“Unless the terms of the instrument creating a power of appointment manifest a contrary 165
intent, the power is nongeneral if: 166
“(1) The power is exercisable only at the powerholder’s death; and 167
“(2) The permissible appointees of the power are a defined and limited class that 168
does not include the powerholder’s estate, the powerholder’s creditors, or the creditors of the 169
powerholder’s estate. 170
Ҥ 19- 1702.05. Rules of classification. 171
“(a) In this section, the term “adverse party” means a person with a substantial beneficial 172
interest in property which would be affected adversely by a powerholder’s exercise or 173
nonexercise of a power of appointment in favor of the powerholder, the powerholder’s estate, a 174
creditor of the powerholder, or a creditor of the powerholder’s estate. 175 ENGROSSED ORIGINAL
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“(b) If a powerholder may exercise a power of appointment only with the consent or 176
joinder of an adverse party, the power is nongeneral. 177
“(c) If the permissible appointees of a power of appointment are not defined and limited, 178
the power is exclusionary. 179
Ҥ 19- 1702.06. Power to revoke or amend. 180
“A donor may revoke or amend a power of appointment only to the extent that: 181
“(1) The instrument creating the power is revocable by the donor; or 182
“(2) The donor reserves a power of revocation or amendment in the instrument 183
creating the power of appointment. 184
“SUBCHAPTER III. EXERCISE OF POWER OF APPOINTMENT. 185
Ҥ 19- 1703.01. Requisites for exercise of power of appointment. 186
“A power of appointment is exercised only: 187
“(1) If the instrument exercising the power is valid under applicable law; 188
“(2) If the terms of the instrument exercising the power: 189
“(A) Manifest the powerholder’s intent to exercise the power; and 190
“(B) Subject to § 19- 1703.04, satisfy the requirements of exercise, if any, 191
imposed by the donor; and 192
“(3) To the extent the appointment is a permissible exercise of the power. 193
Ҥ 19- 1703.02. Intent to exercise: determining intent from residuary clause. 194
“(a) For the purposes of this section, the term: 195 ENGROSSED ORIGINAL
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“(1) “Residuary clause” does not include a residuary clause containing a blanket-196
exercise clause or a specific- exercise clause. 197
“(2) “Will” includes a codicil and a testamentary instrument that revises another 198
will. 199
“(b) A residuary clause in a powerholder’s will, or a comparable clause in the 200
powerholder’s revocable trust, manifests the powerholder’s intent to exercise a power of 201
appointment only if: 202
“(1) The terms of the instrument containing the residuary clause do not manifest a 203
contrary intent; 204
“(2) The power is a general power exercisable in favor of the powerholder’s 205
estate; 206
“(3) There is no gift-in-default clause or the clause is ineffective; and 207
“(4) The powerholder did not release the power. 208
Ҥ 19- 1703.03. Intent to exercise after-acquired power. 209
“Unless the terms of the instrument exercising a power of appointment manifest a 210
contrary intent: 211
“(1) Except as otherwise provided in paragraph (2) of this section, a blanket-212
exercise clause extends to a power acquired by the powerholder after executing the instrument 213
containing the clause; and 214 ENGROSSED ORIGINAL
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“(2) If the powerholder is also the donor of the power, the clause does not extend 215
to the power unless there is no gift-in-default clause or the gift-in-default clause is ineffective. 216
Ҥ 19- 1703.04. Substantial compliance with donor-imposed formal requirement. 217
“A powerholder’s substantial compliance with a formal requirement of appointment 218
imposed by the donor, including a requirement that the instrument exercising the power of 219
appointment make reference or specific reference to the power, is sufficient if: 220
“(1) The powerholder knows of and intends to exercise the power; and 221
“(2) The powerholder’s manner of attempted exercise of the power does not 222
impair a material purpose of the donor in imposing the requirement. 223
Ҥ 19- 1703.05. Permissible appointment. 224
“(a) A powerholder of a general power of appointment that permits appointment to the 225
powerholder or the powerholder’s estate may make any appointment, including an appointment 226
in trust or creating a new power of appointment, that the powerholder could make in disposing of 227
the powerholder’s own property. 228
“(b) A powerholder of a general power of appointment that permits appointment only to 229
the creditors of the powerholder or of the powerholder’s estate may appoint only to those 230
creditors. 231
“(c) Unless the terms of the instrument creating a power of appointment manifest a 232
contrary intent, the powerholder of a nongeneral power may: 233 ENGROSSED ORIGINAL
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“(1) Make an appointment in any form, including an appointment in trust, in favor 234
of a permissible appointee; 235
“(2) Create a general power in a permissible appointee; or 236
“(3) Create a nongeneral power in any person to appoint to one or more of the 237
permissible appointees of the original nongeneral power. 238
“§ 19- 1703.06. Appointment to deceased appointee or permissible appointee’s 239
descendant. 240
“(a) Subject to § 18- 308, an appointment to a deceased appointee is ineffective. 241
“(b) Unless the terms of the instrument creating a power of appointment manifest a 242
contrary intent, a powerholder of a nongeneral power may exercise the power in favor of, or 243
create a new power of appointment in, a descendant of a deceased permissible appointee whether 244
or not the descendant is described by the donor as a permissible appointee. 245
Ҥ 19- 1703.07. Impermissible appointment. 246
“(a) Except as otherwise provided in § 19- 1703.06, an exercise of a power of 247
appointment in favor of an impermissible appointee is ineffective. 248
“(b) An exercise of a power of appointment in favor of a permissible appointee is 249
ineffective to the extent the appointment is a fraud on the power. 250
Ҥ 19- 1703.08. Selective allocation doctrine. 251 ENGROSSED ORIGINAL
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“If a powerholder exercises a power of appointment in a disposition that also disposes of 252
property the powerholder owns, the owned property and the appointive property must be 253
allocated in the permissible manner that best carries out the powerholder’s intent. 254
Ҥ 19- 1703.09. Capture doctrine: disposition of ineffectively appointed property under 255
general power. 256
“To the extent a powerholder of a general power of appointment, other than a power to 257
withdraw property from, revoke, or amend a trust, makes an ineffective appointment: 258
“(1) The gift-in-default clause controls the disposition of the ineffectively 259
appointed property; or 260
“(2) If there is no gift-in-default clause or to the extent the clause is ineffective, 261
the ineffectively appointed property: 262
“(A) Passes to: 263
“(i) The powerholder if the powerholder is a permissible appointee 264
and living; or 265
“(ii) If the powerholder is an impermissible appointee or deceased, 266
the powerholder’s estate if the estate is a permissible appointee; or 267
“(B) If there is no taker under subparagraph (A) of this paragraph, passes 268
under a reversionary interest to the donor or the donor’s transferee or successor in interest. 269
Ҥ 19- 1703.10. Disposition of unappointed property under released or unexercised 270
general power. 271 ENGROSSED ORIGINAL
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“To the extent a powerholder releases or fails to exercise a general power of appointment 272
other than a power to withdraw property from, revoke, or amend a trust: 273
“(1) The gift-in-default clause controls the disposition of the unappointed 274
property; or 275
“(2) If there is no gift-in-default clause or to the extent the clause is ineffective: 276
“(A) Except as otherwise provided in subparagraph (B) of this paragraph, 277
the unappointed property passes to: 278
“(i) The powerholder if the powerholder is a permissible appointee 279
and living; or 280
“(ii) If the powerholder is an impermissible appointee or deceased, 281
the powerholder’s estate if the estate is a permissible appointee; or 282
“(B) To the extent the powerholder released the power, or if there is no 283
taker under subparagraph (A) of this paragraph, the unappointed property passes under a 284
reversionary interest to the donor or the donor’s transferee or successor in interest. 285
Ҥ 19- 1703.11. Disposition of unappointed property under released or unexercised 286
nongeneral power. 287
“To the extent a powerholder releases, ineffectively exercises, or fails to exercise a 288
nongeneral power of appointment: 289
“(1) The gift-in-default clause controls the disposition of the unappointed 290
property; or 291 ENGROSSED ORIGINAL
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“(2) If there is no gift-in-default clause or to the extent the clause is ineffective, 292
the unappointed property: 293
“(A) Passes to the permissible appointees if: 294
“(i) The permissible appointees are defined and limited; and 295
“(ii) The terms of the instrument creating the power do not 296
manifest a contrary intent; or 297
“(B) If there is no taker under subparagraph (A) of this paragraph, passes 298
under a reversionary interest to the donor or the donor’s transferee or successor in interest. 299
Ҥ 19- 1703.12. Disposition of unappointed property if partial appointment to taker in 300
default. 301
“Unless the terms of the instrument creating or exercising a power of appointment 302
manifest a contrary intent, if the powerholder makes a valid partial appointment to a taker in 303
default of appointment, the taker in default of appointment may share fully in unappointed 304
property. 305
Ҥ 19- 1703.13. Appointment to taker in default. 306
“If a powerholder makes an appointment to a taker in default of appointment and the 307
appointee would have taken the property under a gift-in-default clause had the property not been 308
appointed, the power of appointment is deemed not to have been exercised and the appointee 309
takes under the clause. 310
“§ 19- 1703.14. Powerholder’s authority to revoke or amend exercise. 311 ENGROSSED ORIGINAL
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“A powerholder may revoke or amend an exercise of a power of appointment only to the 312
extent that: 313
“(1) The powerholder reserves a power of revocation or amendment in the 314
instrument exercising the power of appointment and, if the power is nongeneral, the terms of the 315
instrument creating the power of appointment do not prohibit the reservation; or 316
“(2) The terms of the instrument creating the power of appointment provide that 317
the exercise is revocable or amendable. 318
“SUBCHAPTER IV. DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO 319
APPOINT. 320
Ҥ 19- 1704.01. Disclaimer. 321
“As provided by Chapter 15: 322
“(1) A powerholder may disclaim all or part of a power of appointment; and 323
“(2) A permissible appointee, appointee, or taker in default of appointment may 324
disclaim all or part of an interest in appointive property. 325
Ҥ 19- 1704.02. Authority to release. 326
“A powerholder may release a power of appointment, in whole or in part, except to the 327
extent the terms of the instrument creating the power prevent the release. 328
Ҥ 19- 1704.03. Method of release. 329 ENGROSSED ORIGINAL
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“(a) For the purposes of this section, the term “record” means information that is 330
inscribed on a tangible medium or that is stored in an electronic or other medium and is 331
retrievable in perceivable form. 332
“(b) A powerholder of a releasable power of appointment may release the power in whole 333
or in part: 334
“(1) By substantial compliance with a method provided in the terms of the 335
instrument creating the power; or 336
“(2) If the terms of the instrument creating the power do not provide a method or 337
the method provided in the terms of the instrument is not expressly made exclusive, by a record 338
manifesting the powerholder’s intent by clear and convincing evidence. 339
Ҥ 19- 1704.04. Revocation or amendment of release. 340
“A powerholder may revoke or amend a release of a power of appointment only to the 341
extent that: 342
“(1) The instrument of release is revocable by the powerholder; or 343
“(2) The powerholder reserves a power of revocation or amendment in the 344
instrument of release. 345
Ҥ 19- 1704.05. Power to contract: presently exercisable power of appointment. 346
“A powerholder of a presently exercisable power of appointment may contract: 347
“(1) Not to exercise the power; or 348 ENGROSSED ORIGINAL
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“(2) To exercise the power if the contract when made does not confer a benefit on 349
an impermissible appointee. 350
Ҥ 19- 1704.06. Power to contract: power of appointment not presently exercisable. 351
“A powerholder of a power of appointment that is not presently exercisable may contract 352
to exercise or not to exercise the power only if the powerholder: 353
“(1) Is also the donor of the power; and 354
“(2) Has reserved the power in a revocable trust. 355
Ҥ 19- 1704.07. Remedy for breach of contract to appoint or not to appoint. 356
“The remedy for a powerholder’s breach of a contract to appoint or not to appoint 357
appointive property is limited to damages payable out of the appointive property or, if 358
appropriate, specific performance of the contract. 359
“SUBCHAPTER V. RIGHTS OF POWERHOLDER’S CREDITORS IN APPOINTIVE 360
PROPERTY. 361
Ҥ 19- 1705.01. Creditor claim: general power created by powerholder. 362
“(a) For the purposes of this section, the term “power of appointment created by the 363
powerholder” includes a power of appointment created in a transfer by another person to the 364
extent the powerholder contributed value to the transfer. 365
“(b) Appointive property subject to a general power of appointment created by the 366
powerholder is subject to a claim of a creditor of the powerholder or of the powerholder’s estate 367
to the extent provided in §§ 28- 3101 to 28- 3111. 368 ENGROSSED ORIGINAL
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“(c) Subject to subsection (b) of this section, appointive property subject to a general 369
power of appointment created by the powerholder is not subject to a claim of a creditor of the 370
powerholder or the powerholder’s estate to the extent the powerholder irrevocably appointed the 371
property in favor of a person other than the powerholder or the powerholder’s estate. 372
“(d) Subject to subsections (b) and (c) of this section, and notwithstanding the presence 373
of a spendthrift provision or whether the claim arose before or after the creation of the power of 374
appointment, appointive property subject to a general power of appointment created by the 375
powerholder is subject to a claim of a creditor of: 376
“(1) The powerholder, to the same extent as if the powerholder owned the 377
appointive property, if the power is presently exercisable; and 378
“(2) The powerholder’s estate, to the extent the estate is insufficient to satisfy the 379
claim and subject to the right of a decedent to direct the source from which liabilities are paid, if 380
the power is exercisable at the powerholder’s death. 381
Ҥ 19- 1705.02. Creditor claim: general power not created by powerholder. 382
“(a) Except as otherwise provided in subsection (b) of this section, appointive property 383
subject to a general power of appointment created by a person other than the powerholder is 384
subject to a claim of a creditor of: 385
“(1) The powerholder, to the extent the powerholder’s property is insufficient, if 386
the power is presently exercisable; and 387 ENGROSSED ORIGINAL
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“(2) The powerholder’s estate, to the extent the estate is insufficient, subject to the 388
right of a decedent to direct the source from which liabilities are paid. 389
“(b) Subject to § 19- 1705.04(c), a power of appointment created by a person other than 390
the powerholder which is subject to an ascertainable standard relating to an individual’s health, 391
education, support, or maintenance, within the meaning of 26 U.S.C. § 2041(b)(1)(A) or 26 392
U.S.C. § 2514(c)(1), is treated for the purposes of this subchapter as a nongeneral power. 393
Ҥ 19- 1705.03. Power to withdraw. 394
“(a) For the purposes of this subchapter, and except as otherwise provided in subsection 395
(b) of this section, a power to withdraw property from a trust is treated, during the time the 396
power may be exercised, as a presently exercisable general power of appointment to the extent of 397
the property subject to the power to withdraw. 398
“(b) On the lapse, release, or waiver of a power to withdraw property from a trust, the 399
power is treated as a presently exercisable general power of appointment only to the extent the 400
value of the property affected by the lapse, release, or waiver exceeds the greater of the amount 401
specified in 26 U.S.C. § 2041(b)(2) and 26 U.S.C. § 2514(e) or the amount specified in 26 402
U.S.C. § 2503(b), on the effective date of this chapter. 403
Ҥ 19- 1705.04. Creditor claim: nongeneral power. 404
“(a) Except as otherwise provided in subsections (b) and (c) of this section, appointive 405
property subject to a nongeneral power of appointment is exempt from a claim of a creditor of 406
the powerholder or the powerholder’s estate. 407 ENGROSSED ORIGINAL
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“(b) Appointive property subject to a nongeneral power of appointment is subject to a 408
claim of a creditor of the powerholder or the powerholder’s estate to the extent that the 409
powerholder owned the property and, reserving the nongeneral power, transferred the property in 410
violation of §§ 28- 3101 to 28- 3111. 411
“(c) If the initial gift in default of appointment is to the powerholder or the powerholder’s 412
estate, a nongeneral power of appointment is treated for purposes of this subchapter as a general 413
power. 414
“SUBCHAPTER VI. MISCELLANEOUS PROVISIONS. 415
Ҥ 19- 1706.01. Uniformity of application and construction. 416
“In applying and construing this chapter , consideration must be given to the need to 417
promote uniformity of the law with respect to its subject matter among states that enact it. 418
Ҥ 19- 1706.02. Relation to Electronic Signatures in Global and National Commerce A ct. 419
“This chapter modifies, limits, or supersedes the Electronic Signatures in Global and 420
National Commerce Act, approved June 30, 2000 (114 Stat. 464; 15 U.S.C. § 7001 et seq. ), but 421
does not modify, limit, or supersede § 101(c) of that act (15 U.S.C. § 7001(c)), or authorize 422
electronic delivery of any of the notices described in § 103(b) of that act (15 U.S.C. § 7003(b)). 423
Ҥ 19- 1706.03. Application to existing relationships. 424
“(a) Except as otherwise provided in this chapter, on and after the effective date of this 425
chapter, the following rules apply: 426 ENGROSSED ORIGINAL
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“(1) This chapter applies to a power of appointment created before, on, or after 427
the effective date of this chapter; 428
“(2) This chapter applies to a judicial proceeding concerning a power of 429
appointment commenced on or after the effective date of this chapter; 430
“(3) This chapter applies to a judicial proceeding concerning a power of 431
appointment commenced before the effective date of this chapter unless the court finds that 432
application of a particular provision of this chapter would interfere substantially with the 433
effective conduct of the judicial proceeding or prejudice a right of a party, in which case the 434
particular provision of this chapter does not apply and the superseded law applies; 435
“(4) A rule of construction or presumption provided in this chapter applies to an 436
instrument executed before the effective date of this chapter unless there is a clear indication of a 437
contrary intent in the terms of the instrument; and 438
“(5) Except as otherwise provided in paragraphs (1) through (4) of this 439
subsection, an action done before the effective date of this chapter is not affected by this chapter. 440
“(b) If a right is acquired, extinguished, or barred on the expiration of a prescribed period 441
that commenced under law of the District of Columbia other than this chapter before the 442
effective date of this chapter, the law continues to apply to the right.”. 443
Sec. 3. Fiscal impact statement. 444 ENGROSSED ORIGINAL
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The Council adopts the fiscal impact statement in the committee report as the fiscal 445
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 446
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a). 447
Sec. 4. Effective date. 448
This act shall take effect following approval by the Mayor (or in the event of veto by the 449
Mayor, action by the Council to override the veto), a 30- day period of congressional review as 450
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 451
24, 1973 (87 Stat. 813; D.C. Official Code § 1- 206.02(c)(1)). 452