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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to powers of appointment.
10 Highlighted Provisions:
11 This bill:
12 ▸ addresses exercise of power of appointment;
13 ▸ addresses compliance with specific reference requirements;
14 ▸ enacts the Uniform Powers of Appointment Act, including:
15 • general provisions, such as definitions, governing law, and the relationship of
16 common law and principles of equity;
17 • providing for the creation, revocation, and amendment of the power of
18 appointment;
19 • addressing the exercise of a power of appointment;
20 • addressing disclaimer or release and the contract to appoint or not appoint;
21 • addressing the rights of a powerholder's creditors in appointive property; and
22 • miscellaneous provisions; and
23 ▸ makes technical and conforming amendments.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:
30 75-2-608, as repealed and reenacted by Laws of Utah 1998, Chapter 39
31 REPEALS AND REENACTS:
32 75-2-704, as enacted by Laws of Utah 1998, Chapter 39
33 ENACTS:
34 75-9-101, Utah Code Annotated 1953
35 75-9-102, Utah Code Annotated 1953
36 75-9-103, Utah Code Annotated 1953
37 75-9-104, Utah Code Annotated 1953
38 75-9-201, Utah Code Annotated 1953
39 75-9-202, Utah Code Annotated 1953
40 75-9-203, Utah Code Annotated 1953
41 75-9-204, Utah Code Annotated 1953
42 75-9-205, Utah Code Annotated 1953
43 75-9-206, Utah Code Annotated 1953
44 75-9-301, Utah Code Annotated 1953
45 75-9-302, Utah Code Annotated 1953
46 75-9-303, Utah Code Annotated 1953
47 75-9-304, Utah Code Annotated 1953
48 75-9-305, Utah Code Annotated 1953
49 75-9-306, Utah Code Annotated 1953
50 75-9-307, Utah Code Annotated 1953
51 75-9-308, Utah Code Annotated 1953
52 75-9-309, Utah Code Annotated 1953
53 75-9-310, Utah Code Annotated 1953
54 75-9-311, Utah Code Annotated 1953
55 75-9-312, Utah Code Annotated 1953
56 75-9-313, Utah Code Annotated 1953
57 75-9-314, Utah Code Annotated 1953
58 75-9-401, Utah Code Annotated 1953
59 75-9-402, Utah Code Annotated 1953
60 75-9-403, Utah Code Annotated 1953
61 75-9-404, Utah Code Annotated 1953
62 75-9-405, Utah Code Annotated 1953
63 75-9-406, Utah Code Annotated 1953
64 75-9-407, Utah Code Annotated 1953
65 75-9-501, Utah Code Annotated 1953
66 75-9-502, Utah Code Annotated 1953
67 75-9-503, Utah Code Annotated 1953
68 75-9-504, Utah Code Annotated 1953
69 75-9-601, Utah Code Annotated 1953
70 75-9-602, Utah Code Annotated 1953
71 75-9-603, Utah Code Annotated 1953
72
73 Be it enacted by the Legislature of the state of Utah:
74 Section 1. Section 75-2-608 is amended to read:
75 75-2-608. Exercise of power of appointment.
76 In the absence of a requirement that a power of appointment be exercised by a
77 reference, or by an express or specific reference, to the power, a general residuary clause in a
78 will, or a will making general disposition of all of the testator's property, expresses an intention
79 to exercise a power of appointment held by the testator only if:
80 (1) the power is a general power exercisable in favor of the powerholder's estate and
81 the creating instrument does not contain [
82 (2) the testator's will manifests an intention to include the property subject to the
83 power.
84 Section 2. Section 75-2-704 is repealed and reenacted to read:
85 75-2-704. Power of appointment -- Compliance with specific reference
86 requirement.
87 A powerholder's substantial compliance with a formal requirement of appointment
88 imposed in a governing instrument by the donor, including a requirement that the instrument
89 exercising the power of appointment make reference or specific reference to the power, is
90 sufficient if:
91 (1) the powerholder knows of and intends to exercise the power; and
92 (2) the powerholder's manner of attempted exercise does not impair a material purpose
93 of the donor imposing the requirement.
94 Section 3. Section 75-9-101 is enacted to read:
95
96
97 75-9-101. Title.
98 This chapter is known as the "Uniform Powers of Appointment Act."
99 Section 4. Section 75-9-102 is enacted to read:
100 75-9-102. Definitions.
101 As used in this chapter:
102 (1) "Appointee" means a person to which a powerholder makes an appointment of
103 appointive property.
104 (2) "Appointive property" means the property or property interest subject to a power of
105 appointment.
106 (3) "Blanket-exercise clause" means a clause in an instrument that exercises a power of
107 appointment and is not a specific-exercise clause. The term includes a clause that:
108 (a) expressly uses the words "any power" in exercising any power of appointment the
109 powerholder has;
110 (b) expressly uses the words "any property" in appointing any property over which the
111 powerholder has a power of appointment; or
112 (c) disposes of all property subject to disposition by the powerholder.
113 (4) "Donor" means a person that creates a power of appointment.
114 (5) "Exclusionary power of appointment" means a power of appointment exercisable in
115 favor of any one or more of the permissible appointees to the exclusion of the other permissible
116 appointees.
117 (6) "General power of appointment" means a power of appointment exercisable in
118 favor of the powerholder, the powerholder's estate, a creditor of the powerholder, or a creditor
119 of the powerholder's estate.
120 (7) "Gift-in-default clause" means a clause identifying a taker in default of
121 appointment.
122 (8) "Impermissible appointee" means a person that is not a permissible appointee.
123 (9) "Instrument" means a record.
124 (10) "Nongeneral power of appointment" means a power of appointment that is not a
125 general power of appointment.
126 (11) "Permissible appointee" means a person in whose favor a powerholder may
127 exercise a power of appointment.
128 (12) "Person" means an individual, estate, trust, business or nonprofit entity, public
129 corporation, government or governmental subdivision, agency, instrumentality, or other legal
130 entity.
131 (13) "Powerholder" means a person in whom a donor creates a power of appointment.
132 (14) "Power of appointment" means a power that enables a powerholder acting in a
133 nonfiduciary capacity to designate a recipient of an ownership interest in, or another power of
134 appointment over, the appointive property. The term does not include a power of attorney.
135 (15) "Presently exercisable power of appointment" means a power of appointment
136 exercisable by the powerholder at a relevant time. The term:
137 (a) includes a power of appointment not exercisable until the occurrence of a specified
138 event, the satisfaction of an ascertainable standard, or the passage of a specified time only after:
139 (i) the occurrence of the specified event;
140 (ii) the satisfaction of the ascertainable standard; or
141 (iii) the passage of the specified time; and
142 (b) does not include a power exercisable only at the powerholder's death.
143 (16) "Record" means information that is inscribed on a tangible medium or that is
144 stored in an electronic or other medium and is retrievable in perceivable form.
145 (17) "Specific-exercise clause" means a clause in an instrument that specifically refers
146 to and exercises a particular power of appointment.
147 (18) "Taker in default of appointment" means a person who takes all or part of the
148 appointive property to the extent the powerholder does not effectively exercise the power of
149 appointment.
150 (19) "Terms of the instrument" means the manifestation of the intent of the maker of
151 the instrument regarding the instrument's provisions as expressed in the instrument or as may
152 be established by other evidence that would be admissible in a legal proceeding.
153 Section 5. Section 75-9-103 is enacted to read:
154 75-9-103. Governing law.
155 Unless the terms of the instrument creating a power of appointment manifest a contrary
156 intent:
157 (1) the creation, revocation, or amendment of the power is governed by the law of the
158 donor's domicile at the relevant time; and
159 (2) the exercise, release, or disclaimer of the power, or the revocation or amendment of
160 the exercise, release, or disclaimer of the power, is governed by the law of the powerholder's
161 domicile at the relevant time.
162 Section 6. Section 75-9-104 is enacted to read:
163 75-9-104. Common law and principles of equity.
164 The common law and principles of equity supplement this chapter, except to the extent
165 modified by this chapter or laws of this state other than this chapter.
166 Section 7. Section 75-9-201 is enacted to read:
167
168 75-9-201. Creation of power of appointment.
169 (1) A power of appointment is created only if:
170 (a) the instrument creating the power:
171 (i) is valid under applicable law; and
172 (ii) except as otherwise provided in Subsection (2), transfers the appointive property;
173 and
174 (b) the terms of the instrument creating the power manifest the donor's intent to create
175 in a powerholder a power of appointment over the appointive property exercisable in favor of a
176 permissible appointee.
177 (2) Subsection (1)(a)(ii) does not apply to the creation of a power of appointment by
178 the exercise of a power of appointment.
179 (3) A power of appointment may not be created in a deceased individual.
180 (4) Subject to an applicable rule against perpetuities, a power of appointment may be
181 created in an unborn or unascertained powerholder.
182 Section 8. Section 75-9-202 is enacted to read:
183 75-9-202. Nontransferability.
184 A powerholder may not transfer a power of appointment. If a powerholder dies without
185 exercising or releasing a power, the power lapses.
186 Section 9. Section 75-9-203 is enacted to read:
187 75-9-203. Presumption of unlimited authority.
188 Subject to Section 75-9-205, and unless the terms of the instrument creating a power of
189 appointment manifest a contrary intent, the power is:
190 (1) presently exercisable;
191 (2) exclusionary; and
192 (3) except as otherwise provided in Section 75-9-204, general.
193 Section 10. Section 75-9-204 is enacted to read:
194 75-9-204. Exception to presumption of unlimited authority.
195 Unless the terms of the instrument creating a power of appointment manifest a contrary
196 intent, the power is nongeneral if:
197 (1) the power is exercisable only at the powerholder's death; and
198 (2) the permissible appointees of the power are a defined and limited class that does
199 not include the powerholder's estate, the powerholder's creditors, or the creditors of the
200 powerholder's estate.
201 Section 11. Section 75-9-205 is enacted to read:
202 75-9-205. Rules of classification.
203 (1) In this section, "adverse party" means a person with a substantial beneficial interest
204 in property that would be affected adversely by a powerholder's exercise or nonexercise of a
205 power of appointment in favor of the powerholder, the powerholder's estate, a creditor of the
206 powerholder, or a creditor of the powerholder's estate.
207 (2) If a powerholder may exercise a power of appointment only with the consent or
208 joinder of an adverse party, the power is nongeneral.
209 (3) If the permissible appointees of a power of appointment are not defined and
210 limited, the power is exclusionary.
211 Section 12. Section 75-9-206 is enacted to read:
212 75-9-206. Power to revoke or amend.
213 A donor may revoke or amend a power of appointment only to the extent that:
214 (1) the instrument creating the power is revocable by the donor; or
215 (2) the donor reserves a power of revocation or amendment in the instrument creating
216 the power of appointment.
217 Section 13. Section 75-9-301 is enacted to read:
218
219 75-9-301. Requisites for exercise of power of appointment.
220 A power of appointment is exercised only:
221 (1) if the instrument exercising the power is valid under applicable law;
222 (2) if the terms of the instrument exercising the power:
223 (a) manifest the powerholder's intent to exercise the power; and
224 (b) subject to Section 75-9-304, satisfy the requirements of exercise, if any, imposed by
225 the donor; and
226 (3) to the extent the appointment is a permissible exercise of the power.
227 Section 14. Section 75-9-302 is enacted to read:
228 75-9-302. Intent to exercise -- Determining intent from residuary clause.
229 (1) As used in this section:
230 (a) "Residuary clause" does not include a residuary clause containing a
231 blanket-exercise clause or a specific-exercise clause.
232 (b) "Will" includes a codicil and a testamentary instrument that revises another will.
233 (2) A residuary clause in a powerholder's will, or a comparable clause in the
234 powerholder's revocable trust, manifests the powerholder's intent to exercise a power of
235 appointment only if:
236 (a) the terms of the instrument containing the residuary clause do not manifest a
237 contrary intent;
238 (b) the power is a general power exercisable in favor of the powerholder's estate;
239 (c) there is no gift-in-default clause or the clause is ineffective; and
240 (d) the powerholder did not release the power.
241 Section 15. Section 75-9-303 is enacted to read:
242 75-9-303. Intent to exercise -- After-acquired power.
243 Unless the terms of the instrument exercising a power of appointment manifest a
244 contrary intent:
245 (1) except as otherwise provided in Subsection (2), a blanket-exercise clause extends to
246 a power acquired by the powerholder after executing the instrument containing the clause; and
247 (2) if the powerholder is also the donor of the power, the clause does not extend to the
248 power unless there is no gift-in-default clause or the gift-in-default clause is ineffective.
249 Section 16. Section 75-9-304 is enacted to read:
250 75-9-304. Substantial compliance with donor-imposed formal requirement.
251 A powerholder's substantial compliance with a formal requirement of appointment
252 imposed by the donor, including a requirement that the instrument exercising the power of
253 appointment make reference or specific reference to the power, is sufficient if:
254 (1) the powerholder knows of and intends to exercise the power; and
255 (2) the powerholder's manner of attempted exercise of the power does not impair a
256 material purpose of the donor in imposing the requirement.
257 Section 17. Section 75-9-305 is enacted to read:
258 75-9-305. Permissible appointment.
259 (1) A powerholder of a general power of appointment that permits appointment to the
260 powerholder or the powerholder's estate may make any appointment, including an appointment
261 in trust or creating a new power of appointment, that the powerholder could make in disposing
262 of the powerholder's own property.
263 (2) A powerholder of a general power of appointment that permits appointment only to
264 the creditors of the powerholder or of the powerholder's estate may appoint only to those
265 creditors.
266 (3) Unless the terms of the instrument creating a power of appointment manifest a
267 contrary intent, the powerholder of a nongeneral power may:
268 (a) make an appointment in any form, including an appointment in trust, in favor of a
269 permissible appointee;
270 (b) create a general power in a permissible appointee; or
271 (c) create a nongeneral power in any person to appoint one or more of the permissible
272 appointees of the original nongeneral power.
273 Section 18. Section 75-9-306 is enacted to read:
274 75-9-306. Appointment to deceased appointee or permissible appointee's
275 descendant.
276 (1) Subject to Sections 75-2-603 and 75-2-604, an appointment to a deceased appointee
277 is ineffective.
278 (2) Unless the terms of the instrument creating a power of appointment manifest a
279 contrary intent, a powerholder of a nongeneral power may exercise the power in favor of, or
280 create a new power of appointment in, a descendant of a deceased permissible appointee
281 whether or not the descendant is described by the donor as a permissible appointee.
282 Section 19. Section 75-9-307 is enacted to read:
283 75-9-307. Impermissible appointment.
284 (1) Except as otherwise provided in Section 75-9-306, an exercise of a power of
285 appointment in favor of an impermissible appointee is ineffective.
286 (2) An exercise of a power of appointment in favor of a permissible appointee is
287 ineffective to the extent the appointment is a fraud on the power.
288 Section 20. Section 75-9-308 is enacted to read:
289 75-9-308. Elective allocation doctrine.
290 If a powerholder exercises a power of appointment in a disposition that also disposes of
291 property the powerholder owns, the owned property and the appointive property shall be
292 allocated in the permissible manner that best carries out the powerholder's intent.
293 Section 21. Section 75-9-309 is enacted to read:
294 75-9-309. Capture doctrine -- Disposition of ineffectively appointed property
295 under general power.
296 To the extent a powerholder of a general power of appointment, other than a power to
297 withdraw property from, revoke, or amend a trust, makes an ineffective appointment:
298 (1) the gift-in-default clause controls the disposition of the ineffectively appointed
299 property; or
300 (2) if there is no gift-in-default clause or to the extent the clause is ineffective, the
301 ineffectively appointed property:
302 (a) passes to:
303 (i) the powerholder if the powerholder is a permissible appointee and is living; or
304 (ii) if the powerholder is an impermissible appointee or is deceased, the powerholder's
305 estate if the estate is a permissible appointee; or
306 (b) if there is no taker under Subsection (2)(a), passes under a reversionary interest to
307 the donor or the donor's transferee or successor in interest.
308 Section 22. Section 75-9-310 is enacted to read:
309 75-9-310. Disposition of unappointed property under released or unexercised
310 general power.
311 To the extent a powerholder releases or fails to exercise a general power of appointment
312 other than a power to withdraw property from, revoke, or amend a trust:
313 (1) the gift-in-default clause controls the disposition of the unappointed property; or
314 (2) if there is no gift-in-default clause or to the extent the clause is ineffective:
315 (a) except as otherwise provided in Subsection (2)(b), the unappointed property passes
316 to:
317 (i) the powerholder if the powerholder is a permissible appointee and is living; or
318 (ii) if the powerholder is an impermissible appointee or is deceased, the powerholder's
319 estate if the estate is a permissible appointee; or
320 (b) to the extent the powerholder released the power, or if there is no taker under
321 Subsection (2)(a), the unappointed property passes under a reversionary interest to the donor or
322 the donor's transferee or successor in interest.
323 Section 23. Section 75-9-311 is enacted to read:
324 75-9-311. Disposition of unappointed property under released or unexercised
325 nongeneral power.
326 To the extent a powerholder releases, ineffectively exercises, or fails to exercise a
327 nongeneral power of appointment:
328 (1) the gift-in-default clause controls the disposition of the unappointed property; or
329 (2) if there is no gift-in-default clause or to the extent the clause is ineffective, the
330 unappointed property:
331 (a) passes to the permissible appointees if:
332 (i) the permissible appointees are defined and limited; and
333 (ii) the terms of the instrument creating the power do not manifest a contrary intent; or
334 (b) if there is no taker under Subsection (2)(a), passes under a reversionary interest to
335 the donor or the donor's transferee or successor in interest.
336 Section 24. Section 75-9-312 is enacted to read:
337 75-9-312. Disposition of unappointed property if partial appointment to taker in
338 default.
339 Unless the terms of the instrument creating or exercising a power of appointment
340 manifest a contrary intent, if the powerholder makes a valid partial appointment to a taker in
341 default of appointment, the taker in default of appointment may share fully in unappointed
342 property.
343 Section 25. Section 75-9-313 is enacted to read:
344 75-9-313. Appointment to taker in default.
345 If a powerholder makes an appointment to a taker in default of appointment and the
346 appointee would have taken the property under a gift-in-default clause had the property not
347 been appointed, the power of appointment is considered not to have been exercised and the
348 appointee takes under the clause.
349 Section 26. Section 75-9-314 is enacted to read:
350 75-9-314. Powerholder's authority to revoke or amend exercise.
351 A powerholder may revoke or amend an exercise of a power of appointment only to the
352 extent that:
353 (1) the powerholder reserves a power of revocation or amendment in the instrument
354 exercising the power of appointment and, if the power is nongeneral, the terms of the
355 instrument creating the power of appointment do not prohibit the reservation; or
356 (2) the terms of the instrument creating the power of appointment provide that the
357 exercise is revocable or amendable.
358 (3) The provisions of this section do not apply to an exercise of a power of
359 appointment if the exercise was executed prior to May 13, 2015, and the powerholder may
360 revoke or amend a prior exercise of a power of appointment unless the instrument creating the
361 power or the instrument exercising the power provided the exercise was irrevocable or could
362 not be amended.
363 Section 27. Section 75-9-401 is enacted to read:
364
365 75-9-401. Disclaimer.
366 As provided by Section 75-2-801:
367 (1) A powerholder may disclaim all or part of a power of appointment.
368 (2) A permissible appointee, an appointee, or a taker in default of appointment may
369 disclaim all or part of an interest in appointive property.
370 Section 28. Section 75-9-402 is enacted to read:
371 75-9-402. Authority to release.
372 A powerholder may release a power of appointment, in whole or in part, except to the
373 extent the terms of the instrument creating the power prevent the release.
374 Section 29. Section 75-9-403 is enacted to read:
375 75-9-403. Method of release.
376 A powerholder of a releasable power of appointment may release the power in whole or
377 in part:
378 (1) by substantial compliance with a method provided in the terms of the instrument
379 creating the power; or
380 (2) if the terms of the instrument creating the power do not provide a method or the
381 method provided in the terms of the instrument is not expressly made exclusive, by a record
382 manifesting the powerholder's intent by clear and convincing evidence.
383 Section 30. Section 75-9-404 is enacted to read:
384 75-9-404. Revocation or amendment of release.
385 A powerholder may revoke or amend a release of a power of appointment only to the
386 extent that:
387 (1) the instrument of release is revocable by the powerholder; or
388 (2) the powerholder reserves a power of revocation or amendment in the instrument of
389 release.
390 Section 31. Section 75-9-405 is enacted to read:
391 75-9-405. Power to contract -- Presently exercisable power of appointment.
392 A powerholder of a presently exercisable power of appointment may contract:
393 (1) not to exercise the power; or
394 (2) to exercise the power if the contract when made does not confer a benefit on an
395 impermissible appointee.
396 Section 32. Section 75-9-406 is enacted to read:
397 75-9-406. Power to contract -- Power of appointment not presently exercisable.
398 A powerholder of a power of appointment that is not presently exercisable may contract
399 to exercise or not to exercise the power only if the powerholder:
400 (1) is also the donor of the power; and
401 (2) has reserved the power in a revocable trust.
402 Section 33. Section 75-9-407 is enacted to read:
403 75-9-407. Remedy for breach of contract to appoint or not to appoint.
404 The remedy for a powerholder's breach of a contract to appoint or not to appoint
405 appointive property is limited to damages payable out of the appointive property or, if
406 appropriate, specific performance of the contract.
407 Section 34. Section 75-9-501 is enacted to read:
408
409 75-9-501. Creditor claim -- General power created by powerholder.
410 (1) In this section, "power of appointment created by the powerholder" includes a
411 power of appointment created in a transfer by another person to the extent the powerholder
412 contributed value to the transfer.
413 (2) Appointive property subject to a general power of appointment created by the
414 powerholder is subject to a claim of a creditor of the powerholder or of the powerholder's estate
415 to the extent provided in Title 25, Chapter 6, Uniform Fraudulent Transfer Act.
416 (3) Subject to Subsection (2), appointive property subject to a general power of
417 appointment created by the powerholder is not subject to a claim of a creditor of the
418 powerholder or the powerholder's estate to the extent the powerholder irrevocably appointed
419 the property in favor of a person other than the powerholder or the powerholder's estate.
420 (4) Subject to Subsections (2) and (3), and notwithstanding the presence of a
421 spendthrift provision or whether the claim arose before or after the creation of the power of
422 appointment, appointive property subject to a general power of appointment created by the
423 powerholder is subject to a claim of a creditor of:
424 (a) the powerholder, to the same extent as if the powerholder owned the appointive
425 property, if the power is presently exercisable; and
426 (b) the powerholder's estate, to the extent the estate is insufficient to satisfy the claim
427 and subject to the right of a decedent to direct the source from which liabilities are paid, if the
428 power is exercisable at the powerholder's death.
429 Section 35. Section 75-9-502 is enacted to read:
430 75-9-502. Creditor claim -- General power not created by powerholder.
431 (1) The property subject to a general power of appointment not created by the
432 powerholder is available to the powerholder's creditors only if the power is exercised. The
433 powerholder of such a power may not be compelled to exercise it, nor may the powerholder's
434 creditors acquire the power. A court may not exercise or require the powerholder to exercise
435 the power of appointment.
436 (2) Subject to Subsection 75-9-504(3), a power of appointment created by a person
437 other than the powerholder which is subject to an ascertainable standard relating to an
438 individual's health, education, support, or maintenance within the meaning of 26 U.S.C. Sec.
439 2041(b)(1)(A) or 26 U.S.C. Sec. 2514(c)(1), is treated for purposes of this part as a nongeneral
440 power.
441 Section 36. Section 75-9-503 is enacted to read:
442 75-9-503. Power to withdraw.
443 (1) For purposes of this part, and except as otherwise provided in Subsection (2), a
444 power to withdraw property from a trust is treated, during the time the power may be exercised,
445 as a presently exercisable general power of appointment to the extent of the property subject to
446 the power to withdraw.
447 (2) On the lapse, release, or waiver of a power to withdraw property from a trust, the
448 power is treated as a presently exercisable general power of appointment only to the extent the
449 value of the property affected by the lapse, release, or waiver exceeds the greater of the amount
450 specified in 26 U.S.C. Sec. 2041(b)(2) and 26 U.S.C. Sec. 2514(e) or the amount specified in
451 26 U.S.C. Sec. 2503(b).
452 Section 37. Section 75-9-504 is enacted to read:
453 75-9-504. Creditor claim -- Nongeneral power.
454 (1) Except as otherwise provided in Subsections (2) and (3), appointive property
455 subject to a nongeneral power of appointment is exempt from a claim of a creditor of the
456 powerholder or the powerholder's estate.
457 (2) Appointive property subject to a nongeneral power of appointment is subject to a
458 claim of a creditor of the powerholder or the powerholder's estate to the extent that the
459 powerholder owned the property and, reserving the nongeneral power, transferred the property
460 in violation of Title 25, Chapter 6, Uniform Fraudulent Transfer Act.
461 (3) If the initial gift in default of appointment is to the powerholder or the
462 powerholder's estate, a nongeneral power of appointment is treated for purposes of this part as
463 a general power.
464 (4) The powerholder of a nongeneral power of appointment may not be compelled to
465 exercise it, nor may the powerholder's creditors acquire the power. A court may not exercise or
466 require the powerholder to exercise the power of appointment.
467 Section 38. Section 75-9-601 is enacted to read:
468
469 75-9-601. Uniformity of application and construction.
470 In applying and construing this uniform act, consideration shall be given to the need to
471 promote uniformity of the law with respect to its subject matter among states that enact it.
472 Section 39. Section 75-9-602 is enacted to read:
473 75-9-602. Relation to Electronic Signatures in Global and National Commerce
474 Act.
475 This chapter modifies, limits, or supersedes the Electronic Signatures in Global and
476 National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede
477 Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of the
478 notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
479 Section 40. Section 75-9-603 is enacted to read:
480 75-9-603. Application to existing relationships.
481 (1) Except as otherwise provided in this chapter, on and after May 13, 2015:
482 (a) this chapter applies to a power of appointment created before, on, or after May 13,
483 2015;
484 (b) this chapter applies to a judicial proceeding concerning a power of appointment
485 commenced on or after May 13, 2015;
486 (c) this chapter applies to a judicial proceeding concerning a power of appointment
487 commenced before May 13, 2015, unless the court finds that application of a particular
488 provision of this chapter would interfere substantially with the effective conduct of the judicial
489 proceeding or prejudice a right of a party, in which case the particular provision of this chapter
490 does not apply and the superseded law applies; and
491 (d) a rule of construction or presumption provided in this chapter applies to an
492 instrument executed before May 13, 2015, unless there is a clear indication of a contrary intent
493 in the terms of the instrument.
494 (2) Except as otherwise provided in Subsections (1)(a) through (d), an action done
495 before May 13, 2015, is not affected by this chapter.
496 (3) If a right is acquired, extinguished, or barred on the expiration of a prescribed
497 period that commenced under law of this state other than this chapter before May 13, 2015, the
498 law continues to apply to the right.