KRS 390.200: 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:

(1) The gift-in-default clause controls the disposition of the unappointed property; or

(2) If there is no gift-in-default clause or to the extent the clause is ineffective:

(a) Except as otherwise provided in paragraph (b) of this subsection, the

unappointed property passes to:

1. The powerholder if the powerholder is a permissible appointee and

living; or

2. If the powerholder is an impermissible appointee or not living, the

powerholder's estate if the estate is a permissible appointee; or

(b) To the extent the powerholder released the power, or if there is no taker under

paragraph (a) of this subsection, the unappointed property passes under a

reversionary interest to the donor or the donor's transferee or successor in

interest.