§ 1305.

253 words·~1 min read·/vt/1305-2

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

§ 1305. Exclusions

(a)As used 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 chapter 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 under chapter 3 of this title 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 and regulations issued thereunder.

(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 2023, No. 104 (Adj. Sess.), § 1, eff. May 13, 2024.)