1. An authorized trustee with unlimited discretion to invade trust principal may appoint
part or all of the principal to a trustee of an appointed trust for, and only for
the benefit of, one, more than one, or all of the current beneficiaries of the invaded
trust, to the exclusion of any one or more of the current beneficiaries. The successor and remainder beneficiaries of the appointed trust may be none, one,
more than one, or all of the successor and remainder beneficiaries of the invaded
2. An authorized trustee exercising the power under subsection 1 of section 59-16.1-04 may grant a discretionary power of appointment in the appointed trust to one or more
of the current beneficiaries of the invaded trust, provided that the beneficiary granted
a power to appoint may receive principal outright under the terms of the invaded trust.
3. If the authorized trustee grants a power of appointment, the class of permissible
appointees in favor of whom the beneficiary may exercise the power of appointment
granted in the appointed trust may be broader or otherwise different from the current,
successor, and remainder beneficiaries of the invaded trust.
4. If the beneficiary or beneficiaries of the invaded trust are described by a class,
the beneficiary or beneficiaries of the appointed trust may include present or future
members of the class.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.