- (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 act 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 sections 15-5-301 to 15-5-305 with respect to the exercise or nonexercise of the power;
(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 federal Internal Revenue Code of 1986, as amended, and regulations issued thereunder, as amended; or
- (f) A power under section 15-5-409.5 (1)(d) to enforce the intended use of the principal and income of a trust authorized by section 15-5-408 for the care of designated domestic or pet animals and the animals' offspring in gestation, if the power is held by a person having custody of an animal for which care is provided by the trust or by a remainder beneficiary of the trust, unless the terms of the trust specifically provide that the power held by the custodian or remainder beneficiary is subject to this part 8.
- (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 that is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction.
Source: L. 2019: Entire part R&RE, (SB 19-105), ch. 51, p. 168, § 1, effective August 2.