Section 1402 - DefinitionsAs used in this chapter:
(1) "Appointive property" means the property or property interest subject to a power of appointment.(2) "Ascertainable standard" has the same meaning as in subdivision 103(2) of this title.(3) "Authorized fiduciary" means: (A) a trustee or other fiduciary, other than a settlor, that has discretion to distribute or direct a trustee to distribute part or all of the principal of the first trust to one or more current beneficiaries;(B) a special fiduciary appointed under section 1409 of this title; or(C) a special-needs fiduciary under section 1413 of this title.(4) "Beneficiary" has the same meaning as in subdivision 103(3) of this title.(5) "Charitable interest" means an interest in a trust that:(A) is held by an identified charitable organization and makes the organization a qualified beneficiary;(B) benefits only charitable organizations and, if the interest were held by an identified charitable organization, would make the organization a qualified beneficiary; or(C) is held solely for charitable purposes and, if the interest were held by an identified charitable organization, would make the organization a qualified beneficiary.(6) "Charitable organization" means: (A) a person, other than an individual, organized and operated exclusively for charitable purposes; or(B) a government or governmental subdivision, agency, or instrumentality, to the extent it holds funds exclusively for a charitable purpose.(7) "Charitable purpose" means the relief of poverty, the advancement of education or religion, the promotion of health, a municipal or other governmental purpose, or another purpose the achievement of which is beneficial to the community.(8) "Court" means the court in this State having jurisdiction in matters relating to trusts.(9) "Current beneficiary" means a beneficiary that on the date the beneficiary's qualification is determined is a distributee or permissible distributee of trust income or principal. The term includes the holder of a presently exercisable general power of appointment but does not include a person that is a beneficiary only because the person holds any other power of appointment.(10) "Decanting power" or "the decanting power" means the power of an authorized fiduciary under this chapter to distribute property of a first trust to one or more second trusts or to modify the terms of the first trust.(11) "Expanded distributive discretion" means a discretionary power of distribution that is not limited to an ascertainable standard or a reasonably definite standard.(12) "First trust" means a trust over which an authorized fiduciary may exercise the decanting power.(13) "First-trust instrument" means the trust instrument for a first trust.(14) "General power of appointment" means a power of appointment exercisable in favor of a powerholder, the powerholder's estate, a creditor of the powerholder, or a creditor of the powerholder's estate.(15) "Jurisdiction," with respect to a geographic area, includes a state or country.(16) "Person" has the same meaning as in section 103 of this title.(17) "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. The term does not include a power of attorney.(18) "Powerholder" means a person in which a donor creates a power of appointment.(19) "Presently exercisable power of appointment" means a power of appointment exercisable by the powerholder at the relevant time. The term:(A) includes a power of appointment exercisable only after the occurrence of a specified event the satisfaction of an ascertainable standard, or the passage of a specified time only after: (i) the occurrence of the specified event;(ii) the satisfaction of the ascertainable standard; or(iii) the passage of the specified time; and(B) does not include a power exercisable only at the powerholder's death.(20) "Qualified beneficiary" has the same meaning as in section 103 of this title.(21) "Reasonably definite standard" means a clearly measurable standard under which a holder of a power of distribution is legally accountable within the meaning of 26 U.S.C. § 674(b)(5)(A) and any applicable regulations.(22) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.(23) "Second trust" means: (A) a first trust after modification under this chapter; or(B) a trust to which a distribution of property from a first trust is or may be made under this chapter.(24) "Second-trust instrument" means the trust instrument for a second trust.(25) "Settlor" has the same meaning as in section 103 of this title.(26) "Sign" means, with present intent to authenticate or adopt a record:(A) to execute or adopt a tangible symbol; or(B) to attach to or logically associate with the record an electronic symbol, sound, or process.(27) "State" has the same meaning as in subdivision 103(17) of this title.(28) "Terms of the trust" has the same meaning as in subdivision 103(18) of this title.(29) "Trust instrument" has the same meaning as in subdivision 103(19) of this title.Added by 2024, No. 177,§ 1, eff. 7/1/2024.