§ 75-2-1204 — When nonvested property interest or power of appointment created.

(1) Except as otherwise provided in this section or Section 75-2-1207, the time of creation of a nonvested property interest or a power of appointment is determined under general principles of property law.
(2) For purposes of this part, if there is a person who alone can exercise a power created by a governing instrument to become the unqualified beneficial owner of:

(2)(a) a nonvested property interest; or
(2)(b) a property interest subject to a power of appointment described in Section 75-2-1203, the nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates.
(3) For purposes of this title, a nonvested property interest or a power of appointment arising 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.
(4) A person who exercises an initial power of appointment may provide in the exercise of that power of appointment:

(4)(a) for a nonvested property interest that is considered:
(4)(a)(i) created when the initial power is irrevocably exercised or when a revocable exercise becomes irrevocable; and
(4)(a)(ii) not created at the time of the creation of the initial power of appointment that is exercised; and
(4)(b) for a further power of appointment created by the exercise of the initial power of appointment that is considered:
(4)(b)(i) created when the initial power is irrevocably exercised or when a revocable exercise becomes irrevocable; and
(4)(b)(ii) not created at the time of the creation of the initial power of appointment that is exercised.

Legislative History

Amended by Chapter 421, 2023 General Session