***** 556.123 THIS SECTION IS AMENDED EFFECTIVE APRIL 1, 2010: See 556.123.amended *****

Sec. 13.

(1) If the donee has a general power of appointment, any interest which the donee has power to appoint or has appointed is to be treated as property of the donee for the purposes of satisfying claims of his creditors, as provided in this section.

(2) If the donee has an unexercised general power of appointment and he can presently exercise such a power, any creditor of the donee may by appropriate proceedings reach any interest which the donee could appoint, to the extent that the donee's individual assets are insufficient to satisfy the creditor's claim. If the donee has exercised the power, the creditor can reach the appointed interests to the same extent that under the law relating to fraudulent conveyances he could reach property which the donee has owned and transferred.

(3) If the donee has at the time of his death a general power of appointment, whether or not he exercises the power, the executor or other legal representative of the donee may reach on behalf of creditors any interest which the donee could have appointed to the extent that the claim of any creditor has been filed and allowed in the donee's estate but not paid because the assets of the estate are insufficient.

(4) Under a general assignment by the donee for the benefit of his creditors, the assignee may exercise any right which a creditor of the donee would have under subsection (2).

(5) A purchaser without actual notice and for a valuable consideration of any interest in property, legal or equitable, takes the interest free of any rights which the donee's estate or a creditor of the donee might have under this section.

(6) If more than 1 person is the donee of a general power of appointment, it shall be presumed that the interests of the donees in the property subject to the power is equally owned among them unless the creating instrument indicates otherwise.