(a)A legacy trust is not considered revocable
because of the inclusion of one (1) or more of the following:
(1)A transferor's power to veto a distribution from the trust.
(2)A power of appointment (other than the power to appoint to
the transferor, the transferor's creditors, the transferor's estate, or
the creditors of the transferor's estate) that may be exercised by
will or other written instrument of the transferor that is effective
only upon the transferor's death.
(3)The transferor's potential or actual receipt of income or
principal, including a right to income retained in the trust.
(4)The transferor's potential or actual receipt of income or
principal from a charitable remainder unitrust or charitable
remainder annuity trust (as those terms are defined in Section 664
of the I
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(a) A legacy trust is not considered revocable
because of the inclusion of one (1) or more of the following:
(1) A transferor's power to veto a distribution from the trust.
(2) A power of appointment (other than the power to appoint to
the transferor, the transferor's creditors, the transferor's estate, or
the creditors of the transferor's estate) that may be exercised by
will or other written instrument of the transferor that is effective
only upon the transferor's death.
(3) The transferor's potential or actual receipt of income or
principal, including a right to income retained in the trust.
(4) The transferor's potential or actual receipt of income or
principal from a charitable remainder unitrust or charitable
remainder annuity trust (as those terms are defined in Section 664
of the Internal Revenue Code).
(5) The transferor's potential or actual receipt of income or
principal from a grantor retained annuity trust or grantor retained
unitrust that is allowed under Section 2702 of the Internal
Revenue Code.
(6) The transferor's potential or actual receipt or use of principal
when that potential or actual receipt or use results from a
qualified trustee's acting:
(A) in the qualified trustee's discretion;
(B) under a standard that governs the distribution of principal
and does not confer upon the transferor a power to consume,
invade, or appropriate property for the benefit of the transferor
unless the power of the transferor is limited by an ascertainable
standard relating to health, education, support, or maintenance
within the meaning of Section 2041(b)(1)(A) or 2514(c)(1) of
the Internal Revenue Code; or
(C) at the direction of a trust director described in section 14 of
this chapter who acts:
(i) in the trust director's discretion; or
(ii) under a standard that governs the distribution of principal
and does not confer upon the transferor a power to consume,
invade, or appropriate property for the benefit of the
transferor unless the power of the transferor is limited by an
ascertainable standard relating to health, education, support,
or maintenance within the meaning of Section 2041(b)(1)(A)
or 2514(c)(1) of the Internal Revenue Code.
(7) The transferor's right to remove a trustee or trust director and
to appoint a new trustee or trust director as long as that right does
not include the appointment of a person who is a related or
subordinate party to the transferor within the meaning of Section
672(c) of the Internal Revenue Code.
(8) The transferor's potential or actual use of real property held
under a qualified personal residence trust (as defined in Section
2702(c) of the Internal Revenue Code).
(b) For the purpose of subsection (a)(6)(A), a qualified trustee is
presumed to have discretion with respect to the distribution of principal
unless that discretion is denied to the qualified trustee by the terms of
the legacy trust.