1. (a) Except as provided in subsections (b) and
2. (c) and in section 1(a) of this chapter, the time of creation of a nonvested property interest or a power of appointment is determined under general principles of property law.

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

   1. (1) a nonvested property interest; or

   2. (2) a property interest subject to a power of appointment described in section 3(b) or 3(c) of this chapter;

      the nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates.

4. (c) For purposes of this chapter, 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.

   [Pre-2002 Recodification Citation: 32-1-4.5-4.]

As added by P.L.2-2002, SEC.2.