§60-1205. Excluded from application.

246 words·~1 min read·/ok/title-60-property/60-1205

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. 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.

B. This act does not apply to a:

1. Power of appointment;

2. Power to appoint or remove a trustee or trust director;

3. Power of a settlor over a trust to the extent the settlor has a power to revoke the trust;

4. Power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of:

a. the beneficiary, or

b. another beneficiary represented by the beneficiary

with respect to the exercise or nonexercise of the

power; or

5. Power over a trust, if:

a. the terms of the trust provide that the power is held

in a nonfiduciary capacity, and

b. 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 thereunder, as amended.

C. 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. Added by Laws 2024, c. 369, § 6, eff. Nov. 1, 2024.