Washington Code 11.98B.030 – Applicability — Exclusions — Power of appointment
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(1) 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.
Terms Used In Washington Code 11.98B.030
- 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
- Internal revenue code: means the United States internal revenue code of 1986, as amended or renumbered as of January 1, 2001. See Washington Code 11.02.005
- person: may be construed to include the United States, this state, or any state or territory, or any public or private corporation or limited liability company, as well as an individual. See Washington Code 1.16.080
- Trustee: means an original, added, or successor trustee and includes the state, or any agency thereof, when it is acting as the trustee of a trust to which chapter 11. See Washington Code 11.02.005
- Trustee: A person or institution holding and administering property in trust.
(2) This chapter does not apply to a:
(a) Power of appointment;
(b) Power to appoint or remove a trustee or trust director;
(c) Power of a settlor over a trust to the extent the settlor has a power to revoke the trust;
(d) 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 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 federal internal revenue code of 1986, as amended, as of January 1, 2021.
(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 which is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction.
[ 2020 c 303 § 5.]