Montana Code 72-40-105. Exclusions
72-40-105. Exclusions. (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 Montana Code 72-40-105
- 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
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Property: means real and personal property. See Montana Code 1-1-205
- Trustee: A person or institution holding and administering property in trust.
- United States: includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)This part 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 under 72-38-301 through 72-38-305 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 United States Internal Revenue Code of 1986, as amended, and regulations issued under it, as amended.
(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.