Section 46-11-304 – Substantial compliance with donor-imposed formal requirement.
A powerholder’s substantial compliance with a formal requirement of appointment imposed by the donor, including a requirement that the instrument exercising the power of appointment make reference or specific reference to the power, is sufficient if: A. the powerholder knows of and intends to exercise the power; and B. the powerholder’s manner of attempted exercise […]
Section 46-11-305 – Permissible appointment.
A. A powerholder of a general power of appointment that permits appointment to the powerholder or the powerholder’s estate may make any appointment, including an appointment in trust or creating a new power of appointment, that the powerholder could make in disposing of the powerholder’s own property. B. A powerholder of a general power of […]
Section 46-11-306 – Appointment to deceased appointee or permissible appointee’s descendant.
A. Subject to Sections 45-2-603 and 45-2-707 NMSA 1978, an appointment to a deceased appointee is ineffective. B. Unless the terms of the instrument creating a power of appointment manifest a contrary intent, a powerholder of a nongeneral power may exercise the power in favor of, or create a new power of appointment in, a […]
Section 46-11-307 – Impermissible appointment.
A. Except as otherwise provided in Section 306 [46-11-306 NMSA 1978] of the Uniform Powers of Appointment Act, an exercise of a power of appointment in favor of an impermissible appointee is ineffective. B. An exercise of a power of appointment in favor of a permissible appointee is ineffective to the extent the appointment is […]
Section 46-11-308 – 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. History: Laws 2016, ch. 69, § 308. ANNOTATIONS Effective dates. — Laws 2016, ch. 69, […]
Section 46-11-309 – 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: A. the gift-in-default clause controls the disposition of the ineffectively appointed property; or B. if there is no gift-in-default clause or to the extent the clause is […]
Section 46-11-201 – Creation of power of appointment.
A. A power of appointment is created only if: (1) the instrument creating the power: (a) is valid under applicable law; and (b) except as otherwise provided in Subsection B of this section, transfers the appointive property; and (2) the terms of the instrument creating the power manifest the donor’s intent to create in a […]
Section 46-11-202 – Nontransferability.
A powerholder shall not transfer a power of appointment. If a powerholder dies without exercising or releasing a power, the power lapses. History: Laws 2016, ch. 69, § 202. ANNOTATIONS Effective dates. — Laws 2016, ch. 69, § 727B made Laws 2016, ch. 69, §§ 101 through 603 and 724 effective January 1, 2017.
Section 46-11-203 – Presumption of unlimited authority.
Subject to Section 205 [46-11-205 NMSA 1978] of the Uniform Powers of Appointment Act, and unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is: A. presently exercisable; B. exclusionary; and C. except as otherwise provided in Section 204 [46-11-204 NMSA 1978] of the Uniform Powers of […]
Section 46-11-204 – Exception to presumption of unlimited authority.
Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is nongeneral if: A. the power is exercisable only at the powerholder’s death; and B. the permissible appointees of the power are a defined and limited class that does not include the powerholder’s estate, the powerholder’s creditors or […]