(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.
This act does not apply to a:
Power of appointment;
Power to appoint or remove a trustee or trust director;
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 sections 15-5-301 to 15-5-305 with respect to the exercise or nonexercise of the power; (e) Power over a trust if:
The terms of the trust provide that the power is held in a nonfiduciary capacity; and
The power must be held in a nonfiduciary capacity to achieve the settlor's tax objectivesunder the federal "Internal Revenue Code of 1986", as amended, and regulations issued thereunder, as amended; or
(f) A power under section 15-5-409.5 (1)(d) to enforce the intended use of the principal and income of a trust authorized by section 15-5-408 for the care of designated domestic or pet animals and the animals' offspring in gestation, if the power is held by a person having custody of an animal for which care is provided by the trust or by a remainder beneficiary of the trust, unless the terms of the trust specifically provide that the power held by the custodian or remainder beneficiary is subject to this part 8.
Unless the terms of a trust provide otherwise, a power granted to a person to designate arecipient 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.
Source: L. 2019: Entire part R&RE, (SB 19-105), ch. 51, p. 168, § 1, effective August 2.