Georgia § 53-12-501 - Application of article; construction of trust instrument.

§ 53-12-501. Application of article; construction of trust instrument.

This article shall apply when the trust instrument evidences the settlor's intent to provide for the office and function of a trust director, regardless of the terms used to describe such office and functions. This article shall not apply to: A power of appointment; A power to appoint or remove a trustee or trust director; A power of a settlor to revoke the trust or amend the trust instrument; A power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of the beneficiary or a person represented by the beneficiary under Code Section 53-12-8 with respect to the exercise or nonexercise of the power; or A power over a trust if both: The trust instrument provides such power is held in a nonfiduciary capacity; and Such power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives. Except as otherwise provided in the trust instrument, for purposes of this Code section a power granted to a person to designate a recipient of an ownership interest in or power over trust property that is exercisable in a capacity other than as a trustee is a power of appointment and not a power of direction. (Code 1981, § 53-12-501 , enacted by Ga. L. 2018, p. 262, § 25/HB 121; Ga. L. 2020, p. 377, § 1-88/HB 865.) The 2020 amendment, effective January 1, 2021, in paragraph (b)(5), inserted "both" and substituted "trust instrument provides" for "terms of the trust provide" and, in subsection (c), substituted "granted to a person to designate a recipient of an ownership interest in or power over trust property that is exercisable in a capacity other than as a trustee is" for "that is both a power of appointment and a power of direction shall be deemed".