A. 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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B. The Uniform Directed Trust 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 under Sections 46A-3- 301 through 46A-3-305 N.M. Stat. Ann. 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 that is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction.