                                 CODE OF VIRGINIA

CREDITOR CLAIM; GENERAL POWER CREATED BY POWERHOLDER (§ 64.2-2735)

A. As used in this section, &#8220;power of appointment created by the
powerholder&#8221; includes a power of appointment created in a transfer by
another person to the extent that the powerholder contributed value to the
transfer.

B. Appointive property subject to a general power of appointment created by the
powerholder is subject to a claim of a creditor of the powerholder or of the
powerholder&#8217;s estate to the extent provided in Chapter 4 (&#xA7; 55.1-400
et seq.) of Title 55.1.

C. Subject to subsection B, appointive property subject to a general power of
appointment created by the powerholder is not subject to a claim of a creditor
of the powerholder or the powerholder&#8217;s estate to the extent that the
powerholder irrevocably appointed the property in favor of a person other than
the powerholder or the powerholder&#8217;s estate.

D. Subject to subsections B and C, 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 the powerholder is subject to a claim of a creditor of:

   1. The powerholder, to the same extent as if the powerholder owned the
   appointive property, if the power is presently exercisable; and

   2. The powerholder&#8217;s estate, to the extent that 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, if the power is exercisable
   at the powerholder&#8217;s death.

HISTORY: 2016, c. 266.