53-12-501. Application of article; construction of trust instrument.

This article shall apply when the trust instrument evidences the settlor’s intent to provide for the office and function of a trust director, regardless of the terms used to describe such office and functions.#

This article shall not apply to:#

1. (1)

   A power of appointment;#

2. (2)

   A power to appoint or remove a trustee or trust director;#

3. (3)

   A power of a settlor to revoke the trust or amend the trust instrument;#

4. (4)

   A power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of the beneficiary or a person represented by the beneficiary under Code Section 53-12-8 with respect to the exercise or nonexercise of the power; or#

5. (5)

   A power over a trust if both:#

   1. (A)

      The trust instrument provides such power is held in a nonfiduciary capacity; and#

   2. (B)

      Such power must be held in a nonfiduciary capacity to achieve the settlor’s tax objectives.#

Except as otherwise provided in the trust instrument, for purposes of this Code section a power granted to a person to designate a recipient of an ownership interest in or power over trust property that is exercisable in a capacity other than as a trustee is a power of appointment and not a power of direction.#