75-10-501. Creditor claim — General power created by powerholder.
(1)
In this section, “power of appointment created by the powerholder” includes a power of appointment created in a transfer by another person to the extent the powerholder contributed value to the transfer.
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Terms Used In Utah Code 75-10-501
Appointive property: means the property or property interest subject to a power of appointment. See Utah Code 75-10-102
Decedent: A deceased person.
General power of appointment: means a power of appointment exercisable in favor of the powerholder, the powerholder's estate, a creditor of the powerholder, or a creditor of the powerholder's estate. See Utah Code 75-10-102
Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
Person: means an individual, estate, trust, business or nonprofit entity, public corporation, government or governmental subdivision, agency, instrumentality, or other legal entity. See Utah Code 75-10-102
Power of appointment: means a power that enables a powerholder acting in a nonfiduciary capacity to designate a recipient of an interest in, or another power of appointment over, the appointive property. See Utah Code 75-10-102
Powerholder: means a person in whom a donor creates a power of appointment. See Utah Code 75-10-102
Appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of the powerholder or of the powerholder’s estate to the extent provided in Title 25, Chapter 6, Uniform Voidable Transactions Act.
(3)
Subject to Subsection (2), appointive property subject to a general power of appointment created by the powerholder is not subject to a claim of a creditor of the powerholder or the powerholder’s estate to the extent the powerholder irrevocably appointed the property in favor of a person other than the powerholder or the powerholder’s estate.
(4)
Subject to Subsections (2) and (3), and notwithstanding the presence of a spendthrift provision or whether the claim arose before or after the creation of the power of appointment, appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of:
(a)
the powerholder, to the same extent as if the powerholder owned the appointive property, if the power is presently exercisable; and
(b)
the powerholder’s estate, to the extent the estate is insufficient to satisfy the claim and subject to the right of a decedent to direct the source from which liabilities are paid, if the power is exercisable at the powerholder’s death.
