(1) Except as otherwise provided in this section or Section 75-2-1207, the time of creation of a nonvested property interest or a power of appointment is determined under general principles of property law.

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Terms Used In Utah Code 75-2-1204

  • Governing instrument: means a deed, will, trust, insurance or annuity policy, account with POD designation, security registered in beneficiary form (TOD), pension, profit-sharing, retirement, or similar benefit plan, instrument creating or exercising a power of appointment or a power of attorney, or a dispositive, appointive, or nominative instrument of any similar type. See Utah Code 75-1-201 v2
  • Person: means an individual or an organization. See Utah Code 75-1-201 v2
  • Property: includes both real and personal property or any interest therein and means anything that may be the subject of ownership. See Utah Code 75-1-201 v2
  • Trust: includes :
              (60)(a)(i) a health savings account, as defined in Section 223of the Internal Revenue Code;
              (60)(a)(ii) an express trust, private or charitable, with additions thereto, wherever and however created; or
              (60)(a)(iii) a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. See Utah Code 75-1-201 v2
(2) For purposes of this part, if there is a person who alone can exercise a power created by a governing instrument to become the unqualified beneficial owner of:

     (2)(a) a nonvested property interest; or
     (2)(b) a property interest subject to a power of appointment described in Section 75-2-1203, the nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates.
(3) For purposes of this title, a nonvested property interest or a power of appointment arising from a transfer of property to a previously funded trust or other existing property arrangement is created when the nonvested property interest or power of appointment in the original contribution was created.
(4) A person who exercises an initial power of appointment may provide in the exercise of that power of appointment:

     (4)(a) for a nonvested property interest that is considered:

          (4)(a)(i) created when the initial power is irrevocably exercised or when a revocable exercise becomes irrevocable; and
          (4)(a)(ii) not created at the time of the creation of the initial power of appointment that is exercised; and
     (4)(b) for a further power of appointment created by the exercise of the initial power of appointment that is considered:

          (4)(b)(i) created when the initial power is irrevocably exercised or when a revocable exercise becomes irrevocable; and
          (4)(b)(ii) not created at the time of the creation of the initial power of appointment that is exercised.