Code Section Group

Probate Code - PROB

DIVISION 2. GENERAL PROVISIONS [100 - 890]

  ( Division 2 enacted by Stats. 1990, Ch. 79. )

PART 14. POWERS OF APPOINTMENT [600 - 695]

  ( Part 14 added by Stats. 1992, Ch. 30, Sec. 2. )

CHAPTER 5. Effect of Failure to Make Effective Appointment [670 - 676]
  ( Chapter 5 added by Stats. 1992, Ch. 30, Sec. 2. )

670.
  

An exercise of a power of appointment is not void solely because it is more extensive than authorized by the power, but is valid to the extent that the exercise was permissible under the terms of the power.

(Added by Stats. 1992, Ch. 30, Sec. 2. Effective January 1, 1993.)

671.
  

(a) Unless the creating instrument or the powerholder, in writing, manifests a contrary intent, where the powerholder dies without having exercised an imperative power of appointment either in whole or in part, the persons designated as permissible appointees take equally of the property not already appointed. Where the creating instrument establishes a minimum distribution requirement that is not satisfied by an equal division of the property not already appointed, the appointees who have received a partial appointment are required to return a pro rata portion of the property they would otherwise be entitled to receive in an amount sufficient to meet the minimum distribution requirement.

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

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

(Amended by Stats. 2016, Ch. 81, Sec. 17. (AB 2846) Effective January 1, 2017.)

672.
  

(a) Except as provided in subdivision (b), if the powerholder of a discretionary power of appointment fails to appoint the property, releases the entire power, or makes an ineffective appointment, in whole or in part, the appointive property not effectively appointed passes to the person named by the donor as taker in default or, if there is none, reverts to the donor.

(b) If the powerholder of a general power of appointment makes an ineffective appointment, an implied alternative appointment to the powerholder’s estate may be found if the powerholder has manifested an intent that the appointive property be disposed of as property of the powerholder rather than as in default of appointment.

(Amended by Stats. 2016, Ch. 81, Sec. 18. (AB 2846) Effective January 1, 2017.)

673.
  

(a) Except as provided in subdivision (b), if an appointment by will or by instrument effective only at the death of the powerholder is ineffective because of the death of an appointee before the appointment becomes effective and the appointee leaves issue surviving the powerholder, the surviving issue of the appointee take the appointed property in the same manner as the appointee would have taken had the appointee survived the powerholder, except that the property passes only to persons who are permissible appointees, including appointees permitted under Section 674. If the surviving issue are all of the same degree of kinship to the deceased appointee, they take equally, but if of unequal degree, then those of more remote degree take in the manner provided in Section 240.

(b) This section does not apply if either the donor or powerholder manifests an intent that some other disposition of the appointive property shall be made.

(Amended by Stats. 2016, Ch. 81, Sec. 19. (AB 2846) Effective January 1, 2017.)

674.
  

(a) Unless the creating instrument expressly provides otherwise, if a permissible appointee dies before the exercise of a special power of appointment, the powerholder has the power to appoint to the issue of the deceased permissible appointee, whether or not the issue was included within the description of the permissible appointees, if the deceased permissible appointee was alive at the time of the execution of the creating instrument or was born thereafter.

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

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

(Amended by Stats. 2016, Ch. 81, Sec. 20. (AB 2846) Effective January 1, 2017.)

675.
  

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 shall be allocated in the permissible manner in accordance with the terms of the creating instrument and that best carries out the powerholder’s intent.

(Added by Stats. 2016, Ch. 81, Sec. 21. (AB 2846) Effective January 1, 2017.)

676.
  

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.

(Added by Stats. 2016, Ch. 81, Sec. 22. (AB 2846) Effective January 1, 2017.)

PROBProbate Code - PROB