Illinois Compiled Statutes
760 ILCS 3/ - Illinois Trust Code.
Article 13 - Uniform Powers of Appointment Law

(760 ILCS 3/Art. 13 heading)

(760 ILCS 3/1301)
Sec. 1301. Article title. This Article may be referred to as the Uniform Powers of Appointment Law.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1302)
Sec. 1302. Definitions. In this Article:
(1) "Appointee" means a person to which a powerholder makes an appointment of appointive property.
(2) (Blank).
(3) "Blanket-exercise clause" means a clause in an instrument that exercises a power of appointment and is not a specific-exercise clause. The term includes a clause that:
(4) "Exclusionary power of appointment" means a power of appointment exercisable in favor of any one or more of the permissible appointees to the exclusion of the other permissible appointees.
(5) "Gift-in-default clause" means a clause identifying a taker in default of appointment.
(6) "Impermissible appointee" means a person that is not a permissible appointee.
(7) "Instrument" means a writing.
(8) (Blank).
(9) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(10) "Specific-exercise clause" means a clause in an instrument that specifically refers to and exercises a particular power of appointment.
(11) "Taker in default of appointment" means a person that takes part or all of the appointive property to the extent the powerholder does not effectively exercise the power of appointment.
(12) "Terms of the instrument" means the manifestation of the intent of the maker of the instrument regarding the instrument's provisions as expressed in the instrument or as may be established by other evidence that would be admissible in a legal proceeding.

(Source: P.A. 101-48, eff. 1-1-20; 102-279, eff. 1-1-22.)

(760 ILCS 3/1303)
Sec. 1303. Governing law. Unless the terms of the instrument creating a power of appointment manifest a contrary intent:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1304)
Sec. 1304. Creation of power of appointment.
(a) A power of appointment is created only if:
(b) Subdivision (a)(1)(B) does not apply to the creation of a power of appointment by the exercise of a power of appointment.
(c) A power of appointment may not be created in a deceased individual.
(d) Subject to an applicable rule against perpetuities, a power of appointment may be created in an unborn or unascertained powerholder.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1305)
Sec. 1305. Nontransferability. A powerholder may not transfer a power of appointment. If the powerholder dies without exercising or releasing the power, the power lapses.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1306)
Sec. 1306. Presumption of unlimited authority. Subject to Section 1308, and unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1307)
Sec. 1307. Exception to presumption of unlimited authority. Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is nongeneral if:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1308)
Sec. 1308. Rules of classification.
(a) In this Section, "adverse party" means a person with a substantial beneficial interest in 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.
(b) If a powerholder may exercise a power of appointment only with the consent or joinder of an adverse party, the power is nongeneral.
(c) If the permissible appointees of a power of appointment are not defined and limited, the power is exclusionary.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1309)
Sec. 1309. Power to revoke or amend. A donor may revoke or amend a power of appointment only to the extent that:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1310)
Sec. 1310. Requisites for exercise of power of appointment.
A power of appointment is exercised only:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1311)
Sec. 1311. Intent to exercise: determining intent from residuary clause.
(a) In this Section:
(b) 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:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1312)
Sec. 1312. Intent to exercise: after-acquired power. Unless the terms of the instrument exercising a power of appointment manifest a contrary intent:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1313)
Sec. 1313. Substantial compliance with donor-imposed formal requirement. A powerholder's substantial compliance with a formal requirement of an appointment imposed by the donor, including a requirement that the instrument exercising the power of appointment make reference or specific reference to the power, is sufficient if:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1314)
Sec. 1314. Permissible appointment.
(a) A powerholder of a general power of appointment that permits appointment to the powerholder or the powerholder's estate may make any appointment, including an appointment in trust or creating a new power of appointment, that the powerholder could make in disposing of the powerholder's own property.
(b) A powerholder of a general power of appointment that permits appointment only to the creditors of the powerholder or of the powerholder's estate is restricted to appointing to those creditors.
(c) Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the powerholder of a nongeneral power may:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1315)
Sec. 1315. Appointment to deceased appointee. Subject to Section 4-11 of the Probate Act of 1975, an appointment to a deceased appointee is ineffective.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1316)
Sec. 1316. Impermissible appointment.
(a) Except as otherwise provided in Section 1315, an exercise of a power of appointment in favor of an impermissible appointee is ineffective.
(b) An exercise of a power of appointment in favor of a permissible appointee is ineffective to the extent the appointment is a fraud on the power.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1317)
Sec. 1317. Selective allocation doctrine. 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 must be allocated in the permissible manner that best carries out the powerholder's intent.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1318)
Sec. 1318. Capture doctrine: disposition of ineffectively appointed property under general power. To the extent a powerholder of a general power of appointment, other than a power to revoke, amend, or withdraw property from a trust, makes an ineffective appointment:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1319)
Sec. 1319. Disposition of unappointed property under released or unexercised general power.
To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to revoke, amend, or withdraw property from a trust:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1320)
Sec. 1320. Disposition of unappointed property under released or unexercised nongeneral power. To the extent a powerholder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1321)
Sec. 1321. Disposition of unappointed property if partial appointment to taker in default. 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.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1322)
Sec. 1322. Appointment to taker in default. If a powerholder of a general power makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-in-default clause had the property not been appointed, the power of appointment is deemed not to have been exercised, and the appointee takes under the gift-in-default clause.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1323)
Sec. 1323. Powerholder's authority to revoke or amend exercise. A powerholder may revoke or amend an exercise of a power of appointment only to the extent that:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1324)
Sec. 1324. Disposition of trust property subject to power. In disposing of trust property subject to a power of appointment, whether exercisable by a will or an instrument other than a will, a trustee acting in good faith shall have no liability to any appointee or taker in default of appointment for relying upon a will, regardless of whether it was admitted to probate, or an instrument believed to be genuine purporting to exercise a power of appointment or for assuming that there is no will or instrument exercising the power of appointment in the absence of actual knowledge thereof within 3 months of the death of the powerholder, in the case of a will, or 3 months of the last date on which the power of appointment may be exercised, in the case of any other instrument. Nothing in this Section precludes a donor of a power or a trustee from requiring that a will be admitted to probate.

(Source: P.A. 101-48, eff. 1-1-20; 102-279, eff. 1-1-22.)

(760 ILCS 3/1325)
Sec. 1325. Disclaimer. As provided by Section 2-7 of the Probate Act of 1975:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1326)
Sec. 1326. Authority to release. A powerholder may release a power of appointment, in whole or in part, except to the extent the terms of the instrument creating the power prevent the release.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1327)
Sec. 1327. Method of release. A powerholder of a releasable power of appointment may release the power in whole or in part:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1328)
Sec. 1328. Revocation or amendment of release. A powerholder may revoke or amend a release of a power of appointment only to the extent that:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1329)
Sec. 1329. Power to contract: presently exercisable power of appointment. A powerholder of a presently exercisable power of appointment may contract:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1330)
Sec. 1330. Power to contract: power of appointment not presently exercisable. A powerholder of a power of appointment that is not presently exercisable may contract to exercise or not to exercise the power only if the powerholder:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1331)
Sec. 1331. Remedy for breach of contract to appoint or not to appoint. The remedy for a powerholder's breach of a contract to appoint or not to appoint is limited to damages payable out of the appointive property or, if appropriate, specific performance of the contract.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1332)
Sec. 1332. Creditor claim: general power created by powerholder.
(a) In this Section, "power of appointment created by the powerholder" includes a power of appointment created in a transfer by another person to the extent the powerholder contributed value to the transfer.
(b) Appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of the powerholder or of the powerholder's estate to the extent provided in the Uniform Fraudulent Transfer Act.
(c) Subject to subsection (b), appointive property subject to a general power of appointment created by the powerholder is not subject to a claim of a creditor of the powerholder or the powerholder's estate to the extent the powerholder irrevocably appointed the property in favor of a person other than the powerholder or the powerholder's estate.
(d) Subject to subsections (b) and (c), and notwithstanding the presence of a spendthrift provision or whether the claim arose before or after the creation of the power of appointment, appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1333)
Sec. 1333. Creditor claim: general power not created by powerholder.
(a) Except as otherwise provided in subsection (b), appointive property subject to a general power of appointment created by a person other than the powerholder is subject to a claim of a creditor of:
(b) Subject to subsection (c) of Section 1335, a power of appointment created by a person other than the powerholder that is subject to an ascertainable standard relating to an individual's health, education, support, or maintenance within the meaning of Section 2041(b)(1)(A) of the Internal Revenue Code or Section 2514(c)(1) of the Internal Revenue Code, as amended, is treated for purposes of this Article as a nongeneral power.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1334)
Sec. 1334. Power to withdraw.
(a) For purposes of Sections 1333 through 1336, and except as otherwise provided in subsection (b), a power to withdraw property from a trust is treated, during the time the power may be exercised, as a presently exercisable general power of appointment to the extent of the property subject to the power to withdraw.
(b) A power to withdraw property from a trust ceases to be treated as a presently exercisable general power of appointment upon its lapse, release, or waiver.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1335)
Sec. 1335. Creditor claim: nongeneral power.
(a) Except as otherwise provided in subsections (b) and (c), appointive property subject to a nongeneral power of appointment is exempt from a claim of a creditor of the powerholder or the powerholder's estate.
(b) Appointive property subject to a nongeneral power of appointment is subject to a claim of a creditor of the powerholder or the powerholder's estate to the extent that the powerholder owned the property and, reserving the nongeneral power, transferred the property in violation of the Uniform Fraudulent Transfer Act.
(c) If the initial gift in default of appointment is to the powerholder or the powerholder's estate, a nongeneral power of appointment is treated for purposes of this Section as a general power.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1336)
Sec. 1336. Application to existing relationships.
(a) Except as otherwise provided in this Article, on and after the effective date of this Code:
(b) If a right is acquired, extinguished, or barred on the expiration of a prescribed period that commenced under law of this State other than this Article before the effective date of this Code, the law continues to apply to the right.
(c) No trustee is liable to any person in whose favor a power of appointment may have been exercised for any distribution of property made to persons entitled to take in default of the effective exercise of the power of appointment to the extent that the distribution shall have been completed before the effective date of this Code.

(Source: P.A. 101-48, eff. 1-1-20.)