§ 1305

Exclusions (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 beneficial interest of: (A) the beneficiary; or(B) another beneficiary represented by the beneficiary under chapter 3 of this title 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 United States Internal Revenue Code of 1986 and regulations issued thereunder. (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

Internal Revenue Code of 1986 and regulations issued thereunder. (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 which is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction. (Added 2023, No. 104 (Adj. Sess.), § 1, eff. May 13, 2024.)