702.205(1) (1) In this section, “adverse party” means a person with a substantial beneficial interest in appointive property that would be affected adversely by a powerholder’s exercise or nonexercise of a power of appointment in favor of the powerholder, the powerholder’s estate, a creditor of the powerholder, or a creditor of the powerholder’s estate.

702.205(2) (2) If a powerholder may exercise a power of appointment only with the consent or joinder of an adverse party, the power is a nongeneral power of appointment.

702.205(3) (3) If the permissible appointees of a power of appointment are not defined and limited, the power is an exclusionary power of appointment.

702.205 History History: 2023 a. 127.

702.206 702.206 Power to revoke or amend. A donor may revoke or amend a power of appointment only to the extent that any of the following applies:

702.206(1) (1) The instrument creating the power is revocable by the donor.

702.206(2) (2) The donor reserves a power of revocation or amendment over the power of appointment in the instrument.

702.206 History History: 2023 a. 127.

subch. III of ch. 702 SUBCHAPTER III

EXERCISE OF POWER OF APPOINTMENT

702.301 702.301 Requisites for exercise of power of appointment.

702.301(1) (1) 

702.301(1)(a) (a) A power of appointment is exercised only if all of the following apply:

702.301(1)(a)1. 1. The instrument exercising the power is valid under applicable law.

702.301(1)(a)2. 2. The terms of the instrument exercising the power do all of the following:

702.301(1)(a)2.a. a. Manifest the powerholder’s intent to exercise the power.

702.301(1)(a)2.b. b. Subject to s. 702.304, satisfy the requirements of exercise, if any, imposed by the donor.

702.301(1)(b) (b) A power of appointment is exercised under par. (a) only to the extent the appointment is a permissible exercise of the power.

702.301(2) (2) If the donor requires the consent of the donor or any other person for the exercise of a power of appointment, the consent must be expressed in the instrument exercising the power of appointment or in a separate written instrument, signed in either case by the persons whose consent is required. If any person whose consent is required dies or becomes legally incapable of consenting, the power of appointment may be exercised by the powerholder without the consent of that person unless the terms of the instrument creating the power of appointment manifest a contrary intent.

702.301(3) (3) 

702.301(3)(a) (a) Except as provided in par. (b) and unless the terms of the instrument creating a power of appointment manifest a contrary intent, if a power of appointment is vested in 2 or more persons, the joint powerholders may only exercise the power of appointment unanimously.

702.301(3)(b) (b) If a power of appointment is vested in 2 or more persons and one or more of the joint powerholders die, become incapable of exercising the power of appointment, or renounce, release, or disclaim the power of appointment, the power of appointment may be exercised unanimously by the other powerholders.

702.301 History History: 2023 a. 127.

702.302 702.302 Intent to exercise: determining intent from residuary clause.

702.302(1) (1) In this section:

702.302(1)(a) (a) “Residuary clause” does not include a residuary clause containing a blanket-exercise clause or a specific-exercise clause.

702.302(1)(b) (b) “Will” includes a codicil and a testamentary instrument that revises another will.

702.302(2) (2) 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 all of the following apply:

702.302(2)(a) (a) The terms of the instrument containing the residuary clause do not manifest a contrary intent.