Okla. Stat. tit. 60 § 1205

Current through Laws 2024, c. 453.

Section 1205

A. 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.

B. This act does not apply to a:

1. Power of appointment;

2. Power to appoint or remove a trustee or trust director;

3. Power of a settlor over a trust to the extent the settlor has a power to revoke the trust;

4. Power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of:

a. the beneficiary, or

b. another beneficiary represented by the beneficiary with respect to the exercise or nonexercise of the power; or

5. Power over a trust, if:

a. the terms of the trust provide that the power is held in a nonfiduciary capacity, and

b. 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 thereunder, as amended.

C. 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.

Okla. Stat. tit. 60, § 1205

Added by Laws 2024 , c. 369, s. 6, eff. 11/1/2024.