Chapter 6. Rights Of Creditors of California Probate Code >> Division 2. >> Part 14. >> Chapter 6.
The donor of a power of appointment cannot nullify or alter
the rights given creditors of the donee by Sections 682, 683, and 684
by any language in the instrument creating the power.
Property covered by a special power of appointment is not
subject to the claims of creditors of the donee or of the donee's
estate or to the expenses of the administration of the donee's
estate.
(a) To the extent that the property owned by the donee is
inadequate to satisfy the claims of the donee's creditors, property
subject to a general power of appointment that is presently
exercisable is subject to the claims to the same extent that it would
be subject to the claims if the property were owned by the donee.
(b) Upon the death of the donee, to the extent that the donee's
estate is inadequate to satisfy the claims of creditors of the estate
and the expenses of administration of the estate, property subject
to a general testamentary power of appointment or to a general power
of appointment that was presently exercisable at the time of the
donee's death is subject to the claims and expenses to the same
extent that it would be subject to the claims and expenses if the
property had been owned by the donee.
(c) This section applies whether or not the power of appointment
has been exercised.
Property subject to an unexercised general power of
appointment created by the donor in the donor's favor, whether or not
presently exercisable, is subject to the claims of the donor's
creditors or the donor's estate and to the expenses of the
administration of the donor's estate.
For the purposes of Sections 682 and 683, a person to whom the
donee owes an obligation of support shall be considered a creditor
of the donee to the extent that a legal obligation exists for the
donee to provide the support.