Montana Code 72-7-201. Creation of power of appointment
72-7-201. Creation of power of appointment. (1) A power of appointment is created only if:
Terms Used In Montana Code 72-7-201
- Appointee: means a person to which a powerholder makes an appointment of appointive property. See Montana Code 72-7-102
- Appointive property: means the property or property interest subject to a power of appointment. See Montana Code 72-7-102
- Instrument: means a writing. See Montana Code 72-7-102
- Power of appointment: means a power that enables a powerholder acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over the appointive property. See Montana Code 72-7-102
- Powerholder: means a person in whom a donor creates a power of appointment. See Montana Code 72-7-102
- Property: means real and personal property. See Montana Code 1-1-205
- Terms of the instrument: means the manifestation of the intent of the maker of the instrument regarding the instrument's provisions as expressed in the instrument or as may be established by other evidence that would be admissible in a legal proceeding. See Montana Code 72-7-102
(a)the instrument creating the power:
(i)is valid under applicable law; and
(ii)except as otherwise provided in subsection (2), transfers the appointive property; and
(b)the terms of the instrument creating the power manifest the donor‘s intent to create in a powerholder a power of appointment over the appointive property exercisable in favor of a permissible appointee.
(2)Subsection (1)(a)(ii) does not apply to the creation of a power of appointment by the exercise of a power of appointment.
(3)A power of appointment may not be created in a deceased individual.
(4)Subject to an applicable rule against perpetuities, a power of appointment may be created in an unborn or unascertained powerholder.