Representative V. Lowry Snow proposes the following substitute bill:


1     
UNIFORM POWERS OF APPOINTMENT ACT

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: V. Lowry Snow

5     
Senate Sponsor: Lyle W. Hillyard

6     

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30          75-2-608, as repealed and reenacted by Laws of Utah 1998, Chapter 39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 [a] an effective gift if the power is not exercised; or
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     
CHAPTER 9. UNIFORM POWERS OF APPOINTMENT ACT

96     
Part 1. General Provisions

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     
Part 2. Creation, Revocation, and Amendment of Power of Appointment

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     
Part 3. Exercise of Power of Appointment

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     
Part 4. Disclaimer or Release - Contract to Appoint or Not to Appoint

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     
Part 5. Rights of Powerholder's Creditors in Appointive Property

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     
Part 6. Miscellaneous Provisions

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.