Utah Code 75-12-105. Exclusions

(1)	As used 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.

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Terms Used In Utah Code 75-12-105

Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
Person: means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, instrumentality, or other legal entity. See Utah Code 75-12-102
Power of direction: includes a power over the investment, management, or distribution of trust property or other matters of trust administration. See Utah Code 75-12-102
Property: includes both real and personal property. See Utah Code 68-3-12.5
Settlor: means the same as that term is defined in Section 75-7-103. See Utah Code 75-12-102
Terms of a trust: means :

(a)

subject to Subsection (8)(b), the manifestation of the settlor's intent regarding a trust's provisions as:

(i)	expressed in the trust instrument; or

(ii)	established by other evidence that would be admissible in a judicial proceeding; or

(b)

the trust's provisions as established, determined, or amended by:

(i)	a trustee or trust director in accordance with applicable law;

(ii)	a court order; or

(iii)

a nonjudicial settlement agreement under Section 75-7-110. See Utah Code 75-12-102

Trust director: means a person that is granted a power of direction by the terms of a trust to the extent the power is exercisable while the person is not serving as a trustee, regardless of whether:

(a)	the terms of the trust refer to the person as a trust director; or

(b)

the person is a beneficiary or settlor of the trust. See Utah Code 75-12-102

Trustee: includes an original, additional, and successor trustee, and a cotrustee. See Utah Code 75-12-102

Trustee: A person or institution holding and administering property in trust.

(2)

This chapter does not apply to:

(a)	a power of appointment;

(b)	a power to appoint or remove a trustee or trust director;

(c)	a power of a settlor over a trust to the extent the settlor has a power to revoke the trust;

(d)

a 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 75-7-301 through 75-7-305 with respect to the exercise or nonexercise of the power; or

(e)

power over a trust if:

(i)	the terms of the trust provide that the power is held in a nonfiduciary capacity; and

(ii)	the power must be held in a nonfiduciary capacity to achieve the settlor’s tax objectives under the Internal Revenue Code of 1986, as amended, and any related Internal Revenue Service regulations.

(3)	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 that is exercisable while the person is not serving as trustee is a power of appointment and not a power of direction.

Enacted by Chapter 153, 2019 General Session

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