Colorado § 15-1.5-122 - Severability.

§ 15-1.5-122. Severability.

If any provision of this article or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this article which can be given effect without the invalid provision or application, and to this end the provisions of this article are severable.

Source: L. 99: Entire article added, p. 1225, § 1, effective August 4.

POWERS OF APPOINTMENT

ARTICLE 2

Powers of Appointment

15-2-101 to 15-2-304. (Repealed)

Editor's note: (1) This article was numbered as articles 1 to 3 of chapter 107, C.R.S. 1963. For amendments to this article prior to its repeal in 2015, consult the 2014 Colorado Revised Statutes and the Colorado statutory research explanatory note beginning on page vii in the front of this volume.

(2) Section 15-2-304 provided for the repeal of this article, effective July 1, 2015. (See L. 2014, pp. 782, 783.)

15-2.5 ARTICLE 2.5

Uniform Powers of Appointment Act

PART 1

GENERAL PROVISIONS

15-2.5-101. Short title.

15-2.5-102. Definitions.

15-2.5-103. Governing law.

15-2.5-104. Supplementation by common law and principles of equity.

PART 2

CREATION, REVOCATION, AND AMENDMENT OF POWER OF APPOINTMENT

15-2.5-201. Creation of power of appointment.

15-2.5-202. Nontransferability.

15-2.5-203. Presumption of unlimited authority.

15-2.5-204. Exception to presumption of unlimited authority.

15-2.5-205. Rules of classification - definitions.

15-2.5-206. Power of the donor to revoke or amend.

PART 3

EXERCISE OF POWER OF APPOINTMENT

15-2.5-301. Requisites for exercise of power of appointment.

15-2.5-302. Intent to exercise - determining intent from residuary clause.

15-2.5-303. Intent to exercise - after-acquired power.

15-2.5-304. Substantial compliance with donor-imposed formal requirement.

15-2.5-305. Permissible appointment.

15-2.5-306. Appointment to deceased appointee or permissible appointee's descendant.

15-2.5-307. Impermissible appointment.

15-2.5-308. Selective allocation doctrine.

15-2.5-309. Capture doctrine - disposition of ineffectively appointed property under general power.

15-2.5-310. Disposition of unappointed property under released or unexercised general power.

15-2.5-311. Disposition of unappointed property under released or unexercised nongeneral power.

15-2.5-312. Disposition of unappointed property if partial appointment to taker in default.

15-2.5-313. Appointment to taker in default.

15-2.5-314. Powerholder's authority to revoke or amend exercise.

PART 4

DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO APPOINT

15-2.5-401. Disclaimer.

15-2.5-402. Authority to release.

15-2.5-403. Method of release.

15-2.5-404. Revocation or amendment of release.

15-2.5-405. Power to contract - presently exercisable power of appointment.

15-2.5-406. Power to contract - power of appointment not presently exercisable.

PART 5

(Reserved)

PART 6

MISCELLANEOUS PROVISIONS

15-2.5-601. Uniformity of application and construction.

15-2.5-602. Relation to electronic signatures in global and national commerce act.

15-2.5-603. Application to existing relationships.

PREFATORY NOTE

Professor W. Barton Leach described the power of appointment as "the most efficient dispositive device that the ingenuity of Anglo-American lawyers has ever worked out." 24 A.B.A. J. 807 (1938). Powers of appointment are routinely included in trusts to add flexibility to the arrangement.

A power of appointment is the authority, acting in a nonfiduciary capacity, to designate recipients of beneficial ownership interests in, or powers of appointment over, the appointive property. An owner, of course, has this authority with respect to the owner's property. By creating a power of appointment, the owner typically confers this authority on someone else.

The power of appointment is a staple of modern estate-planning practice. However, many jurisdictions within the United States have very little statutory or case law on powers of appointment.

A comprehensive restatement of the law of powers of appointment was approved in 2010 and published in 2011 by the American Law Institute. See chapters 17-23 of the Restatement Third of Property: Wills and Other Donative Transfers.

This act draws heavily on that Restatement. The aim of this act is to codify the law of powers of appointment, or at least the portions of the law that are most amenable to codification.

The act is divided into six parts. Part 1 contains general provisions. Part 2 contains provisions concerning the creation, revocation, and amendment of a power of appointment. Part 3 addresses the exercise of a power of appointment. Part 4 contains provisions on the disclaimer or release of a power of appointment and on contracts to appoint or not to appoint. Part 5 concerns the rights of the powerholder's creditors in appointive property. Part 6 contains miscellaneous provisions.

After each section, there is a detailed Comment. The Comments explain, and should be read in conjunction with, the statutory text. The Comments also provide information and guidance about best practices in creating and exercising powers of appointment.

PART 1

GENERAL PROVISIONS