2018 Illinois Compiled Statutes
Chapter 760 - TRUSTS AND FIDUCIARIES
760 ILCS 105/ - Uniform Powers of Appointment Act.
Article 3 - Exercise Of Power Of Appointment

(760 ILCS 105/Art. 3 heading)

(760 ILCS 105/301)
Sec. 301. Requisites for exercise of power of appointment. A power of appointment is exercised only:
(1) if the instrument exercising the power is valid

under applicable law;

(2) if the terms of the instrument exercising the

power:

(A) manifest the powerholder's intent to

exercise the power; and

(B) subject to Section 304, satisfy the

requirements of exercise, if any, imposed by the donor; and

(3) to the extent the appointment is a permissible

exercise of the power.

(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/302)
Sec. 302. Intent to exercise: determining intent from residuary clause.
(a) In this Section:
(1) "Residuary clause" does not include a residuary

clause containing a blanket-exercise clause or a specific-exercise clause.

(2) "Will" includes a codicil and a testamentary

instrument that revises another will.

(b) A residuary clause in a powerholder's will, or a comparable clause in the powerholder's revocable trust, manifests the powerholder's intent to exercise a power of appointment only if:
(1) the terms of the instrument containing the

residuary clause do not manifest a contrary intent;

(2) the power is a general power exercisable in

favor of the powerholder's estate;

(3) there is no gift-in-default clause or it is

ineffective; and

(4) the powerholder did not release the power.
(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/303)
Sec. 303. Intent to exercise: after-acquired power. Unless the terms of the instrument exercising a power of appointment manifest a contrary intent:
(1) except as otherwise provided in paragraph (2), a

blanket-exercise clause extends to a power acquired by the powerholder after executing the instrument containing the clause; and

(2) if the powerholder is also the donor of the

power, the clause does not extend to the power unless there is no gift-in-default clause or it is ineffective.

(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/304)
Sec. 304. Substantial compliance with donor-imposed formal requirement. A powerholder's substantial compliance with a formal requirement of an 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:
(1) the powerholder knows of and intends to exercise

the power; and

(2) the powerholder's manner of attempted exercise

of the power does not impair a material purpose of the donor in imposing the requirement.

(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/305)
Sec. 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 appointment that permits appointment only to the creditors of the powerholder or of the powerholder's estate is restricted to appointing to those creditors.
(c) Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the powerholder of a nongeneral power may:
(1) make an appointment in any form, with any

conditions and limitations, including an appointment in trust to any trustee, in favor of a permissible appointee;

(2) create a general or nongeneral power in a

permissible appointee that may be exercisable in favor of persons other than permissible appointees of the original nongeneral power; or

(3) create a nongeneral power in any person to

appoint to one or more of the permissible appointees of the original nongeneral power.

(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/306)
Sec. 306. Appointment to deceased appointee. Subject to Section 4-11 of the Probate Act of 1975, an appointment to a deceased appointee is ineffective.
(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/307)
Sec. 307. Impermissible appointment.
(a) Except as otherwise provided in Section 306, 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 a fraud on the power.
(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/308)
Sec. 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.
(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/309)
Sec. 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 revoke, amend, or withdraw property from a trust, makes an ineffective appointment:
(1) the gift-in-default clause controls the

disposition of the ineffectively appointed property; or

(2) if there is no gift-in-default clause or to the

extent the clause is ineffective, the ineffectively appointed property:

(A) passes to:
(i) the powerholder if the powerholder is a

permissible appointee and living; or

(ii) if the powerholder is an impermissible

appointee or not living, the powerholder's estate if the estate is a permissible appointee; or

(B) if there is no taker under subparagraph (A),

passes under a reversionary interest to the donor or the donor's transferee or successor in interest.

(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/310)
Sec. 310. Disposition of unappointed property under released or unexercised general power. To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to revoke, amend, or withdraw property from a trust:
(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 the clause is ineffective:

(A) except as otherwise provided in subparagraph

(B), the unappointed property passes to:

(i) the powerholder if the powerholder is a

permissible appointee and living; or

(ii) if the powerholder is an impermissible

appointee or not living, the powerholder's estate if the estate is a permissible appointee; or

(B) to the extent the powerholder released the

power, or if there is no taker under subparagraph (A), the unappointed property passes under a reversionary interest to the donor or the donor's transferee or successor in interest.

(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/311)
Sec. 311. Disposition of unappointed property under released or unexercised nongeneral power. To the extent 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 the clause is ineffective, the unappointed property:

(A) passes to the permissible appointees if:
(i) the permissible appointees are defined

and limited; and

(ii) the terms of the instrument creating

the power do not manifest a contrary intent; or

(B) if there is no taker under subparagraph (A),

passes under a reversionary interest to the donor or the donor's transferee or successor in interest.

(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/312)
Sec. 312. Disposition of unappointed property if partial appointment to taker in default. Unless the terms of the instrument creating or exercising a power of appointment manifest a contrary intent, if the powerholder makes a valid partial appointment to a taker in default of appointment, the taker in default of appointment may share fully in unappointed property.
(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/313)
Sec. 313. Appointment to taker in default. If a powerholder of a general power makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-in-default clause had the property not been appointed, the power of appointment is deemed not to have been exercised, and the appointee takes under the gift-in-default clause.
(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/314)
Sec. 314. Powerholder's authority to revoke or amend exercise. A powerholder may revoke or amend an exercise of a power of appointment only to the extent that:
(1) the powerholder reserves a power of revocation

or amendment in the instrument exercising the power of appointment and, if the power is nongeneral, the terms of the instrument creating the power of appointment do not prohibit the reservation; or

(2) the terms of the instrument creating the power

of appointment provide that the exercise is revocable or amendable.

(Source: P.A. 100-1044, eff. 1-1-19.)

(760 ILCS 105/315)
Sec. 315. Disposition of trust property subject to power. In disposing of trust property subject to a power of appointment exercisable by an instrument other than a will, a trustee acting in good faith shall have no liability to any appointee or taker in default of appointment for relying upon an instrument believed to be genuine purporting to exercise a power of appointment or for assuming that there is no instrument exercising the power of appointment in the absence of actual knowledge thereof within 3 months of the last date on which the power of appointment may be exercised.
(Source: P.A. 100-1044, eff. 1-1-19.)