Rights of Powerholder's Creditors in Appointive Property

Utah Code tit. 75A, ch. 75A-4, pt. 75A-4-P5

in effect

Utah Code § 75A-4-501 Creditor claim -- General power created by powerholder.

75A-4-501. Creditor claim -- General power created by powerholder. (1) As used in this section, "power of appointment created by the powerholder" includes a power of appointment created in a transfer by another person to the extent the powerholder contributed value to the transfer. (2) Appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of the powerholder or of the powerholder's estate to the extent provided in Title 25, Chapter 6, Uniform Voidable Transactions Act. (3) Subject to Subsection (2), appointive property subject to a general power of appointment created by the powerholder is not subject to a claim of a creditor of the powerholder or the powerholder's estate to the extent the powerholder irrevocably appointed the property in favor of a person other than the powerholder or the powerholder's estate. (4) Subject to Subsections (2) and (3), and notwithstanding the presence of a spendthrift provision or whether the claim arose before or after the creation of the power of appointment, appointive property subject to a general power of appointment created by the powerholder is subject to a claim of a creditor of: (a) the powerholder, to the same extent as if the powerholder owned the appointive property, if the power is presently exercisable; and (b) the powerholder's estate, to the extent the estate is insufficient to satisfy the claim and subject to the right of a decedent to direct the source from which liabilities are paid, if the power is exercisable at the powerholder's death. Renumbered and Amended by Chapter 364, 2024 General Session

Utah Code § 75A-4-502 Creditor claim -- Power not created by powerholder.

75A-4-502. Creditor claim -- Power not created by powerholder. (1) (a) The property subject to a general or a nongeneral power of appointment not created by the powerholder, including a presently exercisable general or nongeneral power of appointment, is exempt from a claim of a creditor of the powerholder or the powerholder's estate. (b) The powerholder of such a power may not be compelled to exercise the power and the powerholder's creditors may not acquire the power, any rights thereto, or reach the trust property or beneficial interests by any other means. (c) A court may not exercise or require the powerholder to exercise the power of appointment. (2) As set forth in Section 75A-4-103, the law of the donor's domicile at the time of creation shall govern claims of creditors and other parties claiming an interest in property or rights subject to a power of appointment. Renumbered and Amended by Chapter 364, 2024 General Session

Utah Code § 75A-4-503 Power to withdraw.

75A-4-503. Power to withdraw. (1) For purposes of this part, and except as otherwise provided in Subsection (2), a power to withdraw property from a trust is treated, during the time the power may be exercised, as a presently exercisable general power of appointment to the extent of the property subject to the power to withdraw. (2) On the lapse, release, or waiver of a power to withdraw property from a trust, the power is treated as a presently exercisable general power of appointment only to the extent the value of the property affected by the lapse, release, or waiver exceeds the greater of the amount specified in 26 U.S.C. Sec. 2041(b)(2) and 26 U.S.C. Sec. 2514(e) or the amount specified in 26 U.S.C. Sec. 2503(b). Renumbered and Amended by Chapter 364, 2024 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title75A/Chapter4/75A-4-P5.html?v=C75A-4-P5_2024090120240501Fetched: 10/26/2026