75-10-502. Creditor claim — Power not created by powerholder.
(1)
The property subject to a general or a nongeneral power of appointment not created by the powerholder, including a presently exercisable general or nongeneral power of appointment, is exempt from a claim of a creditor of the powerholder or the powerholder’s estate. The powerholder of such a power may not be compelled to exercise the power and the powerholder’s creditors may not acquire the power, any rights thereto, or reach the trust property or beneficial interests by any other means. A court may not exercise or require the powerholder to exercise the power of appointment.
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Terms Used In Utah Code 75-10-502
Nongeneral power of appointment: means a power of appointment that is not a general power of appointment. 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
As set forth in Section 75-10-103, the law of the donor‘s domicile at the time of creation shall govern claims of creditors and other parties claiming an interest in property or rights subject to a power of appointment.
