Disposition of unappointed property under released or unexercised nongeneral power (§ 64.2-2723)

§ 64.2-2723 – Disposition of unappointed property under released or unexercised nongeneral power

To the extent that a powerholder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment:

1. The gift-in-default clause controls the disposition of the unappointed property; or

2. If there is no gift-in-default clause or to the extent that the clause is ineffective, the unappointed property: a. Passes to the permissible appointees if:

1. The permissible appointees are defined and limited; and

2. The terms of the instrument creating the power do not manifest a contrary intent; or b. If there is no taker under subdivision 2 a, passes under a reversionary interest to the donor or the donor’s transferee or successor in interest.