By: Hartnett (Senate Sponsor - Harris) H.B. No. 1472
(In the Senate - Received from the House March 31, 2003;
April 3, 2003, read first time and referred to Committee on
Jurisprudence; May 2, 2003, reported favorably by the following
vote: Yeas 6, Nays 0; May 2, 2003, sent to printer.)
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.
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