CO Code § 15-2.5-302 (2021)
2021 Colorado Code|Title 15 - Probate, Trusts, and Fiduciaries|Article 2.5 - Uniform Powers of Appointment Act|Part 3 - Exercise of Power of Appointment|§ 15-2.5-302. Intent to Exercise - Determining Intent From Residuary Clause

  In this section:   “Residuary clause” does not include a residuary clause containing a blanket-exercise clause or a specific-exercise clause.    “Will” includes a codicil and a testamentary instrument that revises another will.       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:   The terms of the instrument containing the residuary clause do not manifest a contrary intent;    The power is a general power exercisable in favor of the powerholder's estate;    There is no gift-in-default clause or the clause is ineffective; and    The powerholder did not release the power.        History. Source: L. 2014: Entire article added,(HB 14-1353), ch. 209, p. 776, § 1, effective July 1, 2015.    OFFICIAL COMMENT   This section addresses a question arising under Section 301(1)(b)(I)--namely, whether the powerholder's intent to exercise a power of appointment is manifested by a garden- variety residuary clause such as “All the residue of my estate, I devise to ...” or “All of my estate, I devise to ....” (The section also applies to a comparable provision in the powerholder's revocable trust, such as a provision providing for the distribution of the trust corpus.) This section does not address the effect of a residuary clause that contains a blanket exercise or a specific exercise of a power of appointment. On blanket-exercise and specific-exercise clauses, see the Comment to Section 301.   The rule of this section is that a garden-variety residuary clause does manifest an intent to exercise a power of appointment.  in most circumstances not  Such a clause manifests an intent to exercise a power of appointment only in the rare circumstance when (1) the terms of the instrument containing the residuary clause do not manifest a contrary intent, (2) the power in question is a general power exercisable in favor of the powerholder's estate, (3) there is no gift-in-default clause or it is ineffective, and (4) the powerholder did not release the power.   In a well-planned estate, a power of appointment, whether general or nongeneral, is accompanied by a gift in default. In a less carefully planned estate, on the other hand, there may be no gift-in-default clause. Or, if there is such a clause, the clause may be wholly or partly ineffective. To the extent the donor did not provide for takers in default or the gift-in-default clause is ineffective, it is more efficient to attribute to the powerholder the intent to exercise a general power in favor of the powerholder's residuary devisees. The principal benefit of attributing to the powerholder the intent to exercise a general power is that it allows the property to pass under the powerholder's will instead of as part of the donor's estate. Because the donor's death would normally have occurred before the powerholder died, some of the donor's successors might themselves have predeceased the powerholder. It is more efficient to avoid tracing the interest through multiple estates to determine who are the present successors. Moreover, to the extent the donor did not provide for takers in default, it is also more in accord with the donor's probable intent for the powerholder's residuary clause to be treated as exercising the power.   A gift-in-default clause can be ineffective or partially ineffective for a variety of reasons. The clause might cover only part of the appointive property. The clause might be invalid because it violates a rule against perpetuities or some other rule, or it might be ineffective because it conditioned the interest of the takers in default on an uncertain event that did not happen, the most common of which is an unsatisfied condition of survival.   Under no circumstance does a residuary clause manifest an intent to exercise a general power. A residuary clause disposes of the powerholder's own property, and a nongeneral power is not an ownership-equivalent power. Similarly, a residuary clause does not manifest an intent to exercise a general power which is general only because it is exercisable in favor of the creditors of the powerholder or the creditors of the powerholder's estate.  non  The rule of this section is consistent with, and this Comment draws on, Restatement Third of Property: Wills and Other Donative Transfers § 19.4 and the accompanying Commentary.