Ind. Code § 32-17-8-3.5

Sec. 3.5. When the initial power of appointment in a legacy trust is exercised to create a second power of appointment, a nonvested property interest or the second power of appointment created through the exercise of the initial power of appointment is considered to have been created at the time of the irrevocable exercise of the initial power of appointment, unless the instrument exercising the initial power of appointment provides that the second power of appointment was created at the time of the creation of the initial power of appointment.