1. (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. (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:

   1. (a) a nonvested property interest; or
   2. (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. (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. (4) A person who exercises an initial power of appointment may provide in the exercise of that power of appointment:

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

      1. (i) created when the initial power is irrevocably exercised or when a revocable exercise becomes irrevocable; and
      2. (ii) not created at the time of the creation of the initial power of appointment that is exercised; and

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

      1. (i) created when the initial power is irrevocably exercised or when a revocable exercise becomes irrevocable; and
      2. (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