72-40-105. Exclusions.
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/mt/title-72/chapter-40/part-1/72-40-105·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
72-40-105 . Exclusions.
(1)In this section, "power of appointment" means a power that enables a person acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over trust property.
(2)This part does not apply to a:
(a)power of appointment;
(b)power to appoint or remove a trustee or trust director;
(c)power of a settlor over a trust to the extent the settlor has a power to revoke the trust;
(d)power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of:
(i)the beneficiary; or
(ii)another beneficiary represented by the beneficiary under 72-38-301 through 72-38-305 with respect to the exercise or nonexercise of the power; or
(e)power over a trust if:
(i)the terms of the trust provide that the power is held in a nonfiduciary capacity; and
(ii)the power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives under the United States Internal Revenue Code of 1986, as amended, and regulations issued under it, as amended.
(3)Unless the terms of a trust provide otherwise, a power granted to a person to designate a recipient of an ownership interest in or power of appointment over trust property, which is exercisable while the person is not serving as a trustee, is a power of appointment and not a power of direction.