When nonvested property interest or power of appointment created.

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(1) Except as provided in subsections (2) and (3) of this section and in sections 15-11-1102.5 (3)(a) and 15-11-1106 (1), the time of creation of a nonvested property interest or a power of appointment is determined under general principles of property law.

  1. For purposes of this part 11, if there is a person who alone can exercise a powercreated by a governing instrument to become the unqualified beneficial owner of either a nonvested property interest or a property interest subject to a power of appointment described in section 15-11-1102 (2) or (3), the nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates. For purposes of this part 11, a joint power with respect to community property or to marital property under the "Uniform Marital Property Act" held by individuals married to each other is a power exercisable by one person alone.

  2. For purposes of this part 11, a nonvested property interest or a power of appointmentarising 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.

Source: L. 91: Entire part added, p. 1446, § 9, effective May 31. L. 2006: (1) amended, p. 381, § 11, effective July 1.


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