§ 30-4-9-5

(a) 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.(b) This chapter does not apply to a:(1) power of appointment;(2) power to appoint or remove a trustee or trust director;(3) power of a settlor over a trust to the extent the settlor has a power to revoke the trust;(4) power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficiary interest of:(A) the beneficiary; or(B) another beneficiary represented by the beneficiary with respect to the exercise or nonexercise of the power; or(5) power over a trust if:(A) the terms of the trust provide that the power is held in a nonfiduciary capacity; and(B) the power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives under the Internal Revenue Code.(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 that is exercisable while the person is not serving as a

rovide 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.As added by P.L.221-2019, SEC.10.