(1) A power of appointment is created only if:
(a) The instrument creating the power:
1. Is valid under applicable law; and 2. Except as otherwise provided in subsection (2) of this section, transfers the appointive property; and (b) The terms of the instrument creating the power manifest the donor's intent to create, in a powerholder, a power of appointment over the appointive property exercisable in favor of a permissible appointee.
(2) Subsection (1)(a)2. of this section does not apply to the creation of a power of appointment by the exercise of a power of appointment.
(3) A power of appointment may not be created in a deceased individual.
(4) Subject to an applicable rule against perpetuities, a power of appointment may be created in an unborn or unascertained powerholder.