Amended in Assembly May 9, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2846


Introduced by Assembly Member Maienschein

February 19, 2016


An act to amend Sections 610,begin insert 611, 613, 625, 633, 634, 640, 641, 642, 650, 651, 652, 660, 661, 662, 671, 672, 673, 674, 680,end insert 681,begin delete and 683end deletebegin insert 682, 683, and 684end insert of, and to add Sectionsbegin insert 621,end insert 675 and 676 to, the Probate Code, relating tobegin delete power of appointments.end deletebegin insert powers of appointment.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2846, as amended, Maienschein. begin deletePower of appointments. end deletebegin insertPowers of appointment.end insert

Existing law provides a statutory body of law relating to powers of appointment, including the creation and exercise of, and the revocability of the creation, exercise, or release of, a power of appointment.begin insert Existing law provides that a power of appointment can be created only by a donor having the capacity to transfer the interest in property to which the power relates. Existing law for these purposes defines a person to whom a power of appointment is given or in whose favor a power of appointment is reserved as a “doneeend insertbegin insert.”end insert

This bill would revise and recast those provisions.begin insert The bill would impose additional requirements on the creation of a power of appointment, including the existence of a legally valid creating instrument that manifests the donor’s intent to create a power of appointment and that transfers the appointive property, except as specified.end insert The bill would define the term “power of appointment” for those purposes.begin insert The bill would instead define a person to whom a power of appointment is given or in whose favor a power of appointment is reserved as a “powerholder.end insertbegin insertend insert The bill would require, 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 to be allocated in the permissible mannerbegin insert in accordance with the terms of the creating instrument andend insert to carry out the intent of the powerholder. The bill would require, if a powerholder makes a valid partial appointment to a taker in default of appointment, the taker in default of appointment to share fully in unappointed property. The bill would make property subject to a special power of appointment subject to the claims of creditors of the powerholder or of the powerholder’s estate or the expenses of administration of the powerholder’s estate under specified circumstances. The bill would make conforming changes to related provisions, and would make changes to provisions related to an unexercised general power of appointment, as specified.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 610 of the Probate Code is amended to
2read:

3

610.  

As used in this part:

4(a) “Appointee” means the person in whose favor a power of
5appointment is exercised.

6(b) “Appointive property” means the property or interest in
7property that is the subject of the power of appointment.

8(c) “Creating instrument” means the deed, will, trust, or other
9writing or document that creates or reserves the power of
10appointment.

begin delete

11(d) “Donee” or “powerholder” means the person to whom a
12power of appointment is given or in whose favor a power of
13appointment is reserved.

end delete
begin delete

14 14(e)

end delete

15begin insert(d)end insert “Donor” means the person who creates or reserves a power
16of appointment.

begin delete

16 17(f)

end delete

18begin insert(e)end insert “Permissible appointee” means a person in whose favor a
19 power of appointment can be exercised.

begin delete

18 20(g)

end delete

P3    1begin insert(f)end insert “Power of appointment” means a power that enables a
2powerholder acting in a nonfiduciary capacity to designate a
3recipient of an ownership interest in or another power of
4appointment over the appointive property. The term does not
5include a power of attorney.

begin insert

6
(g) “Powerholder” means the person to whom a power of
7appointment is given or in whose favor a power of appointment is
8reserved.

end insert
9begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 611 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

10

611.  

(a) A power of appointment is “general” only to the extent
11that it is exercisable in favor of thebegin delete donee,end deletebegin insert powerholder,end insert thebegin delete donee’send delete
12begin insert powerholder’send insert estate, thebegin delete donee’send deletebegin insert powerholder’send insert creditors, or
13creditors of thebegin delete donee’send deletebegin insert powerholder’send insert estate, whether or not it is
14exercisable in favor of others.

15(b) A power to consume, invade, or appropriate property for
16the benefit of a person in discharge of thebegin delete donee’send deletebegin insert powerholder’send insert
17 obligation of support that is limited by an ascertainable standard
18relating to the person’s health, education, support, or maintenance
19is not a general power of appointment.

20(c) A power exercisable by thebegin delete doneeend deletebegin insert powerholderend insert only in
21conjunction with a person having a substantial interest in the
22appointive property that is adverse to the exercise of the power in
23favor of thebegin delete donee,end deletebegin insert powerholder,end insert thebegin delete donee’send deletebegin insert powerholder’send insert estate,
24thebegin delete donee’send deletebegin insert powerholder’send insert creditors, or creditors of thebegin delete donee’send delete
25begin insert powerholder’send insert estate is not a general power of appointment.

26(d) A power of appointment that is not “general” is “special.”

27(e) A power of appointment may be general as to some
28appointive property, or an interest in or a specific portion of
29appointive property, and be special as to other appointive property.

30begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 613 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

31

613.  

A power of appointment is “imperative” where the creating
32instrument manifests an intent that the permissible appointees be
33benefited even if thebegin delete doneeend deletebegin insert powerholderend insert fails to exercise the power.
34An imperative power can exist even though thebegin delete doneeend deletebegin insert powerholderend insert
35 has the privilege of selecting some and excluding others of the
36designated permissible appointees. All other powers of appointment
37are “discretionary.” Thebegin delete doneeend deletebegin insert powerholderend insert of a discretionary
38power is privileged to exercise, or not to exercise, the power as
39thebegin delete doneeend deletebegin insert powerholderend insert chooses.

40begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 621 is added to the end insertbegin insertProbate Codeend insertbegin insert, to read:end insert

begin insert
P4    1

begin insert621.end insert  

(a) A power of appointment is created only if all of the
2following are satisfied:

3
(1) There is a creating instrument.

4
(2) The creating instrument is valid under applicable law.

5
(3) Except as provided in subdivision (b), the creating instrument
6transfers the appointive property.

7
(4) The terms of the creating instrument manifest the donor’s
8intent to create in a powerholder a power of appointment over the
9appointive property exercisable in favor of a permissible appointee.

10
(b) Paragraph (3) of subdivision (a) does not apply to the
11creation of a power of appointment by the exercise of a power of
12appointment.

end insert
13begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 625 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

14

625.  

(a) A power of appointment can be exercised only by a
15begin delete doneeend deletebegin insert powerholderend insert having the capacity to transfer the interest in
16property to which the power relates.

17(b) Unless the creating instrument otherwise provides, abegin delete doneeend delete
18begin insert powerholderend insert who is a minor may not exercise a power of
19appointment during minority.

20begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 633 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

21

633.  

(a) If the creating instrument requires the consent of the
22donor or other person to exercise a power of appointment, the
23power can only be exercised when the required consent is contained
24in the instrument of exercise or in a separate written instrument,
25signed in each case by the person whose consent is required.

26(b) Unless expressly prohibited by the creating instrument:

27(1) If a person whose consent is required dies, the power may
28be exercised by thebegin delete doneeend deletebegin insert powerholderend insert without the consent of that
29person.

30(2) If a person whose consent is required becomes legally
31incapable of consenting, the person’s guardian or conservator may
32consent to an exercise of the power.

33(3) A consent may be given before or after the exercise of the
34power by thebegin delete donee.end deletebegin insert powerholder.end insert

35begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 634 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

36

634.  

A power of appointment created in favor of two or more
37begin delete doneesend deletebegin insert powerholdersend insert can only be exercised when all of thebegin delete doneesend delete
38begin insert powerholdersend insert unite in its exercise. If one or more of thebegin delete doneesend delete
39begin insert powerholdersend insert dies, becomes legally incapable of exercising the
P5    1power, or releases the power, the power may be exercised by the
2others, unless expressly prohibited by the creating instrument.

3begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 640 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

4

640.  

(a) The exercise of a power of appointment requires a
5manifestation of thebegin delete donee’send deletebegin insert powerholder’send insert intent to exercise the
6power.

7(b) A manifestation of thebegin delete donee’send deletebegin insert powerholder’send insert intent to
8exercise a power of appointment exists in any of the following
9circumstances:

10(1) Thebegin delete doneeend deletebegin insert powerholderend insert declares, in substance, that thebegin delete doneeend delete
11begin insert powerholderend insert exercises specific powers or all the powers thebegin delete doneeend delete
12begin insert powerholderend insert has.

13(2) Thebegin delete doneeend deletebegin insert powerholderend insert purports to transfer an interest in
14the appointive property that thebegin delete doneeend deletebegin insert powerholderend insert would have
15no power to transfer except by virtue of the power.

16(3) Thebegin delete doneeend deletebegin insert powerholderend insert makes a disposition that, when
17considered with reference to the property owned and the
18circumstances existing at the time of the disposition, manifests the
19begin delete donee’send deletebegin insert powerholder’send insert understanding that thebegin delete doneeend deletebegin insert powerholderend insert
20 was disposing of the appointive property.

21(c) The circumstances described in subdivision (b) are
22illustrative, not exclusive.

23begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 641 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

24

641.  

(a) A general residuary clause in a will, or a will making
25general disposition of all the testator’s property, does not exercise
26a power of appointment held by the testator unless specific
27reference is made to the power or there is some other indication
28of intent to exercise the power.

29(b) This section applies in a case where thebegin delete doneeend deletebegin insert powerholderend insert
30 dies on or after July 1, 1982.

31begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 642 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

32

642.  

If a power of appointment existing at thebegin delete donee’send delete
33begin insert powerholder’send insert death, but created after the execution of thebegin delete donee’send delete
34begin insert powerholder’send insert will, is exercised by the will, the appointment is
35effective except in either of the following cases:

36(a) The creating instrument manifests an intent that the power
37may not be exercised by a will previously executed.

38(b) The will manifests an intent not to exercise a power
39subsequently acquired.

40begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 650 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

P6    1

650.  

(a) Thebegin delete doneeend deletebegin insert powerholderend insert of a general power of
2appointment may make an appointment:

3(1) Of all of the appointive property at one time, or several
4partial appointments at different times, where the power is
5exercisable inter vivos.

6(2) Of present or future interests or both.

7(3) Subject to conditions or charges.

8(4) Subject to otherwise lawful restraints on the alienation of
9the appointed interest.

10(5) In trust.

11(6) Creating a new power of appointment.

12(b) The listing in subdivision (a) is illustrative, not exclusive.

13begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 651 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

14

651.  

Subject to the limitations imposed by the creating
15instrument, thebegin delete doneeend deletebegin insert powerholderend insert of a special power may make
16any of the types of appointment permissible for thebegin delete doneeend delete
17begin insert powerholderend insert of a general power under Section 650.

18begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 652 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

19

652.  

(a) Except as provided in subdivision (b), thebegin delete doneeend delete
20begin insert powerholderend insert of a special power of appointment may appoint the
21whole or any part of the appointive property to any one or more
22of the permissible appointees and exclude others.

23(b) If the donor specifies either a minimum or maximum share
24or amount to be appointed to one or more of the permissible
25appointees, the exercise of the power must conform to the
26specification.

27begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 660 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

28

660.  

(a) Thebegin delete doneeend deletebegin insert powerholderend insert of a power of appointment
29that is presently exercisable, whether general or special, can
30contract to make an appointment to the same extent that thebegin delete doneeend delete
31begin insert powerholderend insert could make an effective appointment.

32(b) Thebegin delete doneeend deletebegin insert powerholderend insert of a power of appointment cannot
33contract to make an appointment while the power of appointment
34is not presently exercisable. If a promise to make an appointment
35under such a power is not performed, the promisee cannot obtain
36either specific performance or damages, but the promisee is not
37prevented from obtaining restitution of the value given by the
38promisee for the promise.

39(c) Unless the creating instrument expressly provides that the
40begin delete doneeend deletebegin insert powerholderend insert may not contract to make an appointment while
P7    1the power of appointment is not presently exercisable, subdivision
2(b) does not apply to the case where the donor and thebegin delete doneeend delete
3begin insert powerholderend insert are the same person. In this case, thebegin delete doneeend delete
4begin insert powerholderend insert can contract to make an appointment to the same
5extent that thebegin delete doneeend deletebegin insert powerholderend insert could make an effective
6appointment if the power of appointment were presently
7exercisable.

8begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 661 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

9

661.  

(a) Unless the creating instrument otherwise provides, a
10general or special power of appointment that is a discretionary
11power, whether testamentary or otherwise, may be released, either
12with or without consideration, by a written instrument signed by
13thebegin delete doneeend deletebegin insert powerholderend insert and delivered as provided in subdivision
14(c).

15(b) A releasable power may be released with respect to the whole
16or any part of the appointive property and may also be released in
17such manner as to reduce or limit the permissible appointees. No
18partial release of a power shall be deemed to make imperative the
19remaining power that was not imperative before the release unless
20the instrument of release expressly so provides. No release of a
21power that is not presently exercisable is permissible where the
22donor designated persons or a class to take in default of thebegin delete donee’send delete
23begin insert powerholder’send insert exercise of the power unless the release serves to
24benefit all persons designated as provided by the donor.

25(c) A release shall be delivered as follows:

26(1) If the creating instrument specifies a person to whom a
27release is to be delivered, the release shall be delivered to that
28person, but delivery need not be made as provided in this paragraph
29if the person cannot with due diligence be found.

30(2) In a case where the property to which the power relates is
31held by a trustee, the release shall be delivered to the trustee.

32(3) In a case not covered by paragraph (1) or (2), the release
33may be delivered to any of the following:

34(A) A person, other than thebegin delete donee,end deletebegin insert powerholder,end insert who could
35be adversely affected by the exercise of the power.

36(B) The county recorder of the county in which thebegin delete doneeend delete
37begin insert powerholderend insert resides or in which the deed, will, or other instrument
38creating the power is filed.

39(d) A release of a power of appointment that affects real property
40or obligations secured by real property shall be acknowledged and
P8    1proved, and may be certified and recorded, in like manner and
2with like effect as grants of real property, and all statutory
3provisions relating to the recordation or nonrecordation of
4conveyances of real property and to the effect thereof apply to a
5release with like effect, without regard to the date when the release
6was delivered, if at all, pursuant to subdivision (c). Failure to
7deliver, pursuant to subdivision (c), a release that is recorded
8pursuant to this subdivision does not affect the validity of any
9transaction with respect to the real property or obligation secured
10thereby, and the general laws of this state on recording and its
11effect govern the transaction.

12(e) This section does not impair the validity of a release made
13before July 1, 1970.

14begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 662 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

15

662.  

(a) A release on behalf of a minorbegin delete doneeend deletebegin insert powerholderend insert
16 shall be made by the guardian of the estate of the minor pursuant
17to an order of court obtained under this section.

18(b) The guardian or other interested person may file a petition
19with the court in which the guardianship of the estate proceeding
20is pending for an order of the court authorizing or requiring the
21guardian to release the ward’s powers as abegin delete doneeend deletebegin insert powerholderend insert or
22a power of appointment in whole or in part.

23(c) Notice of the hearing on the petition shall be given for the
24period and in the manner provided in Chapter 3 (commencing with
25Section 1460) of Part 1 of Division 4 to all of the following (other
26than the petitioner or persons joining in the petition):

27(1) The persons required to be given notice under Chapter 3
28(commencing with Section 1460) of Part 1 of Division 4.

29(2) The donor of the power, if alive.

30(3) The trustee, if the property to which the power relates is
31held by a trustee.

32(4) Other persons as ordered by the court.

33(d) After hearing, the court in its discretion may make an order
34authorizing or requiring the guardian to release on behalf of the
35ward a general or special power of appointment as permitted under
36Section 661, if the court determines, taking into consideration all
37the relevant circumstances, that the ward as a prudent person would
38make the release of the power of appointment if the ward had the
39capacity to do so.

P9    1(e) Nothing in this section imposes any duty on the guardian to
2file a petition under this section, and the guardian is not liable for
3failure to file a petition under this section.

4begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 671 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

5

671.  

(a) Unless the creating instrument or thebegin delete donee,end delete
6begin insert powerholder,end insert in writing, manifests a contrary intent, where the
7begin delete doneeend deletebegin insert powerholderend insert dies without having exercised an imperative
8power of appointment either in whole or in part, the persons
9designated as permissible appointees take equally of the property
10not already appointed. Where the creating instrument establishes
11a minimum distribution requirement that is not satisfied by an
12equal division of the property not already appointed, the appointees
13who have received a partial appointment are required to return a
14pro rata portion of the property they would otherwise be entitled
15to receive in an amount sufficient to meet the minimum distribution
16requirement.

17(b) Where an imperative power of appointment has been
18exercised defectively, either in whole or in part, its proper
19execution may be adjudged in favor of the person intended to be
20benefited by the defective exercise.

21(c) Where an imperative power of appointment has been created
22so that it confers on a person a right to have the power exercised
23in the person’s favor, the proper exercise of the power can be
24compelled in favor of the person, or the person’s assigns, creditors,
25guardian, or conservator.

26begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 672 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

27

672.  

(a) Except as provided in subdivision (b), if thebegin delete doneeend delete
28begin insert powerholderend insert of a discretionary power of appointment fails to
29appoint the property, releases the entire power, or makes an
30ineffective appointment, in whole or in part, the appointive property
31not effectively appointed passes to the person named by the donor
32as taker in default or, if there is none, reverts to the donor.

33(b) If thebegin delete doneeend deletebegin insert powerholderend insert of a general power of appointment
34makes an ineffective appointment, an implied alternative
35appointment to thebegin delete donee’send deletebegin insert powerholder’send insert estate may be found if
36thebegin delete doneeend deletebegin insert powerholderend insert has manifested an intent that the appointive
37property be disposed of as property of thebegin delete doneeend deletebegin insert powerholderend insert
38 rather than as in default of appointment.

39begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 673 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

P10   1

673.  

(a) Except as provided in subdivision (b), if an
2appointment by will or by instrument effective only at the death
3of thebegin delete doneeend deletebegin insert powerholderend insert is ineffective because of the death of an
4appointee before the appointment becomes effective and the
5appointee leaves issue surviving thebegin delete donee,end deletebegin insert powerholder,end insert the
6surviving issue of the appointee take the appointed property in the
7same manner as the appointee would have taken had the appointee
8survived thebegin delete donee,end deletebegin insert powerholder,end insert except that the property passes
9only to persons who are permissible appointees, including
10appointees permitted under Section 674. If the surviving issue are
11all of the same degree of kinship to the deceased appointee, they
12take equally, but if of unequal degree, then those of more remote
13degree take in the manner provided in Section 240.

14(b) This section does not apply if either the donor orbegin delete doneeend delete
15begin insert powerholderend insert manifests an intent that some other disposition of the
16appointive property shall be made.

17begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 674 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

18

674.  

(a) Unless the creating instrument expressly provides
19otherwise, if a permissible appointee dies before the exercise of a
20special power of appointment, thebegin delete doneeend deletebegin insert powerholderend insert has the
21power to appoint to the issue of the deceased permissible appointee,
22whether or not the issue was included within the description of the
23permissible appointees, if the deceased permissible appointee was
24alive at the time of the execution of the creating instrument or was
25born thereafter.

26(b) This section applies whether the special power of
27appointment is exercisable by inter vivos instrument, by will, or
28otherwise.

29(c) This section applies to a case where the power of
30appointment is exercised on or after July 1, 1982, but does not
31affect the validity of any exercise of a power of appointment made
32before July 1, 1982.

33

begin deleteSEC. 2.end delete
34
begin insertSEC. 21.end insert  

Section 675 is added to the Probate Code, to read:

35

675.  

If a powerholder exercises a power of appointment in a
36disposition that also disposes of property the powerholder owns,
37the owned property and the appointive property shall be allocated
38in the permissible mannerbegin insert in accordance with the terms of the
39creating instrument andend insert
that best carries out the powerholder’s
40intent.

P11   1

begin deleteSEC. 3.end delete
2
begin insertSEC. 22.end insert  

Section 676 is added to the Probate Code, to read:

3

676.  

Unless the terms of the instrument creating or exercising
4a power of appointment manifest a contrary intent, if the
5powerholder makes a valid partial appointment to a taker in default
6of appointment, the taker in default of appointment may share fully
7in unappointed property.

8begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 680 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

9

680.  

The donor of a power of appointment cannot nullify or
10alter the rights given creditors of thebegin delete doneeend deletebegin insert powerholderend insert by
11Sections 682, 683, and 684 by any language in the instrument
12creating the power.

13

begin deleteSEC. 4.end delete
14
begin insertSEC. 24.end insert  

Section 681 of the Probate Code is amended to read:

15

681.  

(a) Except as provided in subdivision (b), property
16covered by a special power of appointment is not subject to the
17claims of creditors of the powerholder or of the powerholder’s
18estate or to the expenses of the administration of the powerholder’s
19estate.

20(b) Property subject to a special power of appointment shall be
21subject to the claims of creditors of the powerholder or of the
22powerholder’s estate or the expenses of administration of the
23powerholder’s estate under either of the following circumstances:

24(1) To the extent that the powerholder owned the property and,
25reserving the special power, transferred the property in violation
26of the Uniform Voidable Transactions Act (Chapter 1 (commencing
27with Section 3439) of Title 2 of Part 2 of Division 4 of the Civil
28Code).

29(2) If the initial gift in default of the exercise of the power is to
30the powerholder or the powerholder’s estate.

31begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 682 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

32

682.  

(a) To the extent that the property owned by thebegin delete doneeend delete
33begin insert powerholderend insert is inadequate to satisfy the claims of thebegin delete donee’send delete
34begin insert powerholder’send insert creditors, property subject to a general power of
35appointment that is presently exercisable is subject to the claims
36to the same extent that it would be subject to the claims if the
37property were owned by thebegin delete donee.end deletebegin insert powerholder.end insert

38(b) Upon the death of thebegin delete donee,end deletebegin insert powerholder,end insert to the extent that
39thebegin delete donee’send deletebegin insert powerholder’send insert estate is inadequate to satisfy the claims
40of creditors of the estate and the expenses of administration of the
P12   1estate, property subject to a general testamentary power of
2appointment or to a general power of appointment that was
3presently exercisable at the time of thebegin delete donee’send deletebegin insert powerholder’send insert
4 death is subject to the claims and expenses to the same extent that
5it would be subject to the claims and expenses if the property had
6been owned by thebegin delete donee.end deletebegin insert powerholder.end insert

7(c) This section applies whether or not the power of appointment
8has been exercised.

9

begin deleteSEC. 5.end delete
10
begin insertSEC. 26.end insert  

Section 683 of the Probate Code is amended to read:

11

683.  

Property subject to a general power of appointment created
12by thebegin delete powerholderend deletebegin insert donorend insert in thebegin delete powerholder’send deletebegin insert donor’send insert favor,
13whether or not presently exercisable, is subject to the claims of
14thebegin delete powerholder’send deletebegin insert donor’send insert creditors or thebegin delete powerholder’send deletebegin insert donor’send insert
15 estate and to the expenses of the administration of the
16begin delete powerholder’send deletebegin insert donor’send insert estate, except to the extent thebegin delete powerholderend delete
17begin insert donorend insert effectively irrevocably appointed the property subject to the
18general power of appointment in favor of a person other than the
19begin delete powerholderend deletebegin insert donorend insert or thebegin delete powerholder’send deletebegin insert donor’send insert estate.

20begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 684 of the end insertbegin insertProbate Codeend insertbegin insert is amended to read:end insert

21

684.  

For the purposes of Sections 682 and 683, a person to
22whom thebegin delete doneeend deletebegin insert powerholderend insert owes an obligation of support shall
23be considered a creditor of thebegin delete doneeend deletebegin insert powerholderend insert to the extent
24that a legal obligation exists for thebegin delete doneeend deletebegin insert powerholderend insert to provide
25the support.



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