A. 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 act 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 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, as amended, and regulations issued thereunder, as amended. 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 by Laws 2024, c. 369, § 6, eff. Nov. 1, 2024.