§ 72-40-105

72-40-105. Exclusions. (1) 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) This part does not apply to a: (a) power of appointment; (b) power to appoint or remove a trustee or trust director; (c) power of a settlor over a trust to the extent the settlor has a power to revoke the trust; (d) power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of: (i) the beneficiary; or (ii) another beneficiary represented by the beneficiary under 72-38-301 through 72-38-305 with respect to the exercise or nonexercise of the power; or (e) power over a trust if: (i) the terms of the trust provide that the power is held in a nonfiduciary capacity; and (ii) 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, as amended, and regulations issued under it, as amended. (3) Unless the terms of a trust provide otherwise, a power granted to a person to designate a recipient of an

s Internal Revenue Code of 1986, as amended, and regulations issued under it, as amended. (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, which is exercisable while the person is not serving as a trustee, is a power of appointment and not a power of direction. History: En. Sec. 5, Ch. 325, L. 2021.