§ 41-16. When nonvested property interest or power of appointment created. - North Carolina Statutes

§41‑16.  When nonvested property interest or power of appointment created.

(a)        Except as providedin subsections (b) and (c) of this section and in G.S. 41‑19(a), the timefor creation of a nonvested property interest or a power of appointment isdetermined under general principles of property law.

(b)        For purposes ofthis Article, if there is a person who alone can exercise a power created by agoverning instrument to become the unqualified beneficial owner of (i) anonvested property interest or (ii) a property interest subject to a power ofappointment described in G.S. 41‑15(b) or (c), the nonvested propertyinterest or power of appointment is created when the power to become theunqualified beneficial owner terminates.

(c)        For purposes ofthis Article, a nonvested property interest or a power of appointment arisingfrom a transfer of property to a previously funded trust or other existingproperty arrangement is created when the nonvested property interest or powerof appointment in the original contribution was created. (1995,c. 190, s. 1.)