78R2256 KCR-F


By:  Hartnett                                                     H.B. No. 1472



A BILL TO BE ENTITLED

AN ACT

relating to the exercise of powers of appointment.                            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 181.001, Property Code, is amended by 
adding Subdivision (1-a) to read as follows:
		(1-a)  "Object of the power of appointment" means a 
person to whom the donee is given the power to appoint.
	SECTION 2.  Chapter 181, Property Code, is amended by adding 
Subchapter C to read as follows:

SUBCHAPTER C.  EXERCISE OF POWERS OF APPOINTMENT
	Sec. 181.081.  EXTENT OF POWER.  Unless an instrument 
creating a power expressly provides to the contrary, a donee may 
exercise a power in any manner consistent with this subchapter.
	Sec. 181.082.  GENERAL EXERCISE.  In exercising a power, a 
donee may make an appointment:
		(1)  of present, future, or present and future 
interests;            
		(2)  with conditions and limitations;                                  
		(3)  with restraints on alienation;                                    
		(4)  of interests to a trustee for the benefit of one or 
more objects of the power; and
		(5)  that creates any right existing under common law.                 
	Sec. 181.083. CREATING ADDITIONAL POWERS.  (a) In exercising 
a power, a donee may make appointments that create in the objects of 
the power additional powers of appointment. The additional powers 
of appointment must be exercisable in favor of objects of the power 
who would have been permissible objects under the original donee's 
power.
	(b)  In exercising a power, a donee who may appoint outright 
to an object of the power may make appointments that create in the 
object of the power powers exercisable in favor of persons that the 
original donee may direct, even though the objects of the secondary 
power of appointment may not have been permissible objects of the 
original donee's power.
	SECTION 3.  This Act takes effect September 1, 2003, and 
applies only to a power of appointment exercised on or after that 
date, without regard to whether the instrument creating that power 
was made before, on, or after that date.