75-2-1204. When nonvested property interest or power of appointment created.

292 words·~1 min read·/ut/title-75/chapter-2/75-2-1204

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

Effective 5/3/2023

(1)Except as otherwise provided in this section or Section 75-2-1207 , the time of creation of a nonvested property interest or a power of appointment is determined under general principles of property law.

(2)For purposes of this part, if there is a person who alone can exercise a power created by a governing instrument to become the unqualified beneficial owner of:

(a)a nonvested property interest; or

(b)a property interest subject to a power of appointment described in Section 75-2-1203 , the nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates.

(3)For purposes of this title, a nonvested property interest or a power of appointment arising from a transfer of property to a previously funded trust or other existing property arrangement is created when the nonvested property interest or power of appointment in the original contribution was created.

(4)A person who exercises an initial power of appointment may provide in the exercise of that power of appointment:

(a)for a nonvested property interest that is considered:

(i)created when the initial power is irrevocably exercised or when a revocable exercise becomes irrevocable; and

(ii)not created at the time of the creation of the initial power of appointment that is exercised; and

(b)for a further power of appointment created by the exercise of the initial power of appointment that is considered:

(i)created when the initial power is irrevocably exercised or when a revocable exercise becomes irrevocable; and

(ii)not created at the time of the creation of the initial power of appointment that is exercised.

Amended by Chapter 421 , 2023 General Session