1. (a) For the purposes of this section, the term "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. (b) This chapter does not apply to a:

   1. (1) Power of appointment;
   2. (2) Power to appoint or remove a trustee or trust director;
   3. (3) Power of a settlor over a trust to the extent the settlor has a power to revoke the trust;

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

      1. (A) The beneficiary; or
      2. (B) Another beneficiary represented by the beneficiary under §§ 19-1303.01 through 19-1303.05 with respect to the exercise or nonexercise of the power; or

   5. (5) Power over a trust if:

      1. (A) The terms of the trust provide that the power is held in a nonfiduciary capacity; and
      2. (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.
3. (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.

History

Mar. 21, 2025, D.C. Law 25-298, § 2(c)