New Mexico § 46-14-5 - Exclusions

§ 46-14-5. Exclusions

A. As used in this section, “ power of appointment ” means a power that enables a person acting in a nonfiduciary capacity to designate

a recipient of an ownership interest in, or another power of appointment over, trust

property. B. The Uniform Directed Trust Act does not apply to a: (1) power of appointment; (2) power to appoint or remove a trustee or trust director; (3) power of a settlor over a trust to the extent the settlor has a power to revoke

the trust; (4) power of a beneficiary over a trust to the extent the exercise or nonexercise

of the power affects the beneficial interest of: (a) the beneficiary; or (b) another beneficiary represented by the beneficiary under Sections 46A-3-301 through 46A-3-305 NMSA 1978 with respect to the exercise or nonexercise of the power; or (5) power over a trust if: (a) the terms of the trust provide that the power is held in a nonfiduciary capacity;

and (b) the power must be held in a nonfiduciary capacity to achieve the settlor's tax

objectives under the United States Internal Revenue Code of 1986, as amended, and

regulations issued thereunder, as amended. C. Unless the terms of a trust provide otherwise, a power granted to a person to designate

a recipient of an ownership interest in, or power of appointment over, trust property

that is exercisable while the person is not serving as a trustee is a power of appointment

and not a power of direction.