66-1-203 - Creation of nonvested property interest or power of appointment.

66-1-203. Creation of nonvested property interest or power of appointment.

(a)  Except as provided in subsections (b) and (c) of this section and in § 66-1-206(a), the time of creation of a nonvested property interest or a power of appointment is determined by other applicable statutes or, if none, under general principles of property law.

(b)  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:

     (1)  A nonvested property interest; or

     (2)  A property interest subject to a power of appointment described in §§ 66-1-202(b) or (c);

the nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates.

(c)  For purposes of this part, 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.

[Acts 1994, ch. 654, § 3.]