Delaware Code (Titles 8, 9, 25, 30)

25 Del. C. § 505

Exercise of powers of appointment

# (a)

Unless the instrument creating a nongeneral power of appointment expressly manifests a contrary intent of the donor, the donee of such a power, in addition to exercising the power in any other manner permitted by law and the instrument creating the power, may effectively appoint all or a portion of the assets subject to such power to a trustee or trustees for the benefit of 1 or more objects of the power and may, in addition, create in an object of the power a general or nongeneral power of appointment, exercisable during life or at death, over assets subject to the original power or may create in a person who is not an object of the power a nongeneral power of appointment, exercisable during life or at death, to appoint such assets among objects all of whom are objects of the original power.

# (b)

Even if the instrument creating a general power of appointment that is exercisable in favor of the donee or the donee’s estate expressly manifests a contrary intent of the donor, the donee of such a power may make any appointment of all or a portion of the assets subject to such power, including one in trust and one that creates a power of appointment in another, that the donee could make by appointing to the donee or the donee’s estate and then disposing of the appointive assets as owned property.

# (c)

The donee of a general power of appointment that is exercisable only in favor of the donee’s creditors or the creditors of the donee’s estate may effectively appoint all or a portion of the assets subject to such power only to those creditors.

# (d)

For purposes of this section, the donee of a general power of appointment that is exercisable in favor of the donee’s creditors or the creditors of the donee’s estate and is also exercisable in favor of other objects of the power not including the donee or the donee’s estate shall be treated as having 2 powers of appointment including:

# (1)

A general power of appointment described in subsection (c) of this section above; and

# (2)

A nongeneral power of appointment described in subsection (a) of this section above.

# (e)

When a donee of a nongeneral power of appointment appoints, effective on the donee's death, all or a portion of the assets subject to such power, to the donee's revocable trust, for the benefit of 1 or more objects of the power, such appointment shall be treated as having created, effective on the donee's death, a separate trust within such donee's revocable trust solely for the benefit of the objects of the power, which therefore shall not be subject to the claims of creditors of the donee, the donee's estate, or the donee's revocable trust (whether under § 3337 of Title 12 or any other law).

Amendment history

74 Del. Laws, c. 102, § 2; 79 Del. Laws, c. 352, § 5; 81 Del. Laws, c. 320, § 6; 82 Del. Laws, c. 52, § 3

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