1. (1) 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.

2. (2) This chapter does not apply to:

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

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

      1. (i) the beneficiary; or
      2. (ii) another beneficiary represented by the beneficiary under Chapter 2, Part 3, Representation, with respect to the exercise or nonexercise of the power; or

   5. (e) power over a trust if:

      1. (i) the terms of the trust provide that the power is held in a nonfiduciary capacity; and
      2. (ii) the power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives under the Internal Revenue Code of 1986, as amended, and any related Internal Revenue Service regulations.
3. (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 trustee is a power of appointment and not a power of direction.

Renumbered and Amended by Chapter 310, 2025 General Session