Montana Code 72-7-305. Permissible appointment
72-7-305. Permissible appointment. (1) A powerholder of a general power of appointment that permits appointment to the powerholder or the powerholder’s estate may make any appointment, including an appointment in trust or creating a new power of appointment, that the powerholder could make in disposing of the powerholder’s own property.
Terms Used In Montana Code 72-7-305
- Appointee: means a person to which a powerholder makes an appointment of appointive property. See Montana Code 72-7-102
- General power of appointment: means a power of appointment exercisable in favor of the powerholder, the powerholder's estate, a creditor of the powerholder, or a creditor of the powerholder's estate. See Montana Code 72-7-102
- Instrument: means a writing. See Montana Code 72-7-102
- Permissible appointee: means a person in whose favor a powerholder may exercise a power of appointment. See Montana Code 72-7-102
- Person: means an individual, estate, trust, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity. 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
(2)A powerholder of a general power of appointment that permits appointment only to the creditors of the powerholder or of the powerholder’s estate may appoint only to those creditors.
(3)Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the powerholder of a nongeneral power may:
(a)make an appointment in any form, including an appointment in trust, in favor of a permissible appointee;
(b)create a general power in a permissible appointee;
(c)create a nongeneral power in any person to appoint to one or more of the permissible appointees of the original nongeneral power; or
(d)create a nongeneral power in a permissible appointee to appoint to one or more persons if the permissible appointees of the new nongeneral power include the permissible appointees of the original nongeneral power.