(1) To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to withdraw property from, revoke, or amend a trust:
(a) The gift-in-default clause controls the disposition of the unappointed property; or
(b) If there is no gift-in-default clause or to the extent the clause is ineffective:
(I) Except as otherwise provided in subparagraph (II) of this paragraph (b), the unappointed property passes to:
(A) The powerholder if the powerholder is a permissible appointee and living; or
(B) If the powerholder is an impermissible appointee or deceased, the powerholder's estate if the estate is a permissible appointee; or
(II) To the extent the powerholder released the power, or if there is no taker under subparagraph (I) of this paragraph (b), the unappointed property passes under a reversionary interest to the donor or to the donor's transferee or successor in interest.
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