|
Repealed or Renumbered Repealed or Renumbered Repealed or Renumbered Section 34.27.051
- 34.27.100 supersede the rule of the common law known as the rule against perpetuities. The common law rule against perpetuities does not apply in this state. A contingent remainder is not defeated by the termination of a precedent estate before the occurrence of the contingency that was to cause the remainder to take effect. If the contingency occurs later, the remainder takes effect in the same way as a springing or shifting executory interest.
Article 02. RULES AGAINST PERPETUITIES Repealed or Renumbered If real property is granted or devised to a person and after the person's death, to the person's heirs or the heirs of the person's body, however the grant or devise is expressed, an estate for life only vests in the person, and a remainder goes to the person's heirs or the heirs of the person's body as purchasers. (a) A general or nongeneral power of appointment not presently exercisable because of a condition precedent is invalid unless, within a period of 1,000 years after its creation, either the power is irrevocably exercised or the power terminates. For purposes of this subsection, the period in which the power must be exercised or the power terminated is computed from the time of creation of the original power of appointment under which a subsequent general power of appointment not presently exercisable or a subsequent nongeneral power of appointment not presently exercisable was created.
(b) If a nongeneral power of appointment is exercised to create a new presently exercisable general power of appointment,
all property interests subject to that new presently exercisable general power of appointment are invalid unless,
within 1,000 years after the creation of the new presently exercisable general power of appointment, the property interests that are subject to the new presently exercisable general power of appointment either vest or terminate.
(c) If a nongeneral power of appointment is exercised to create a new or successive nongeneral power of appointment or a new or successive testamentary general power of appointment, all property interests subject to the exercise of that new or successive nongeneral or testamentary general power of appointment are invalid unless, within 1,000 years from the time of creation of the original instrument or conveyance creating the original nongeneral power of appointment that is exercised to create a new or successive nongeneral or testamentary general power of appointment, the property interests that are subject to the new or successive nongeneral or testamentary general power of appointment either vest or terminate.
A property interest that, under Section 34.27.051
, becomes invalid shall, upon the expiration of the 1,000-year period set out in Section 34.27.051
,
(1) if income from the property interest is payable
(A) to one person, be distributed to the person to whom the income is then payable;
(B) to more than one person, be distributed to the persons to whom the income is then payable
(i) in the shares to which the persons are entitled to the income; or
(ii) equally among all persons who are entitled to the income if shares are not specified;
(2) if income from the property interest is payable in the discretion of a trustee and is payable
(A) to one person, be distributed to the person then eligible to receive the income; or
(B) to more than one person, be distributed to the persons then eligible to receive the income
(i) in the shares to which the persons are entitled to the income; or
(ii) equally among all persons who are entitled to the income if shares are not specified; or
(3) when there is no person then living to whom the property interest may be distributed under (1) or (2) of this section,
be payable to one or more organizations described in 26 U.S.C. 2055(a) (Internal Revenue Code), or to one or more organizations described in any successor provision to 26 U.S.C. 2055(a), in the shares or proportions that the trustee or trustees then acting may determine.
(a) Except as extended by (b) of this section, the former provisions of Section 34.27.051
- 34.27.100 apply to a nonvested property interest or a power of appointment that is created on or after January 1, 1996, and before April 2, 1997. For purposes of this subsection, a nonvested property interest or a power of appointment created by the exercise of a power of appointment is created when the power is irrevocably exercised or when a revocable exercise becomes irrevocable.
(b) If a nonvested property interest or a power of appointment was created before January 1, 1996, and is determined in a judicial proceeding, commenced on or after that date, to violate this state's rule against perpetuities as that rule existed before January 1, 1996, or if a nonvested property interest or a power of appointment was created on or after January 1, 1996, but before April 2, 1997, and is determined in a judicial proceeding, commenced on or after that date,
to violate this state's rule against perpetuities as that rule existed, on or after January 1, 1996, and before April
2, 1997, a court, upon the petition of an interested person, may reform the disposition in the manner that most closely approximates the transferor's manifested plan of distribution and is within the limits of the rule against perpetuities applicable when the nonvested property interest or power of appointment was created. For purposes of this subsection, a nonvested property interest or a power of appointment created by the exercise of a power of appointment is created when the power is irrevocably exercised or when a revocable exercise becomes irrevocable.
(c) The provisions of Section 34.27.051
apply to a trust instrument or conveyance executed on or after April 2, 1997, if the trust instrument or conveyance creates a contingent power of appointment or nonvested property interest subject to the exercise of a power of appointment that creates a new or successive power of appointment.
(a) A future interest or trust is void if, as to property subject to the future interest or trust,
(1) the future interest or trust suspends the power of alienation of the property, the suspension of the power of alienation is for a period of at least 30 years after the death of an individual alive at the time of the creation of the future interest or trust, and the suspension of the power of alienation occurs in the document creating the future interest or trust;
(2) the future interest or trust suspends the power of alienation of the property and the suspension of the power of alienation is for a period of at least 30 years after the death of an individual alive at the time of the creation of the future interest or trust as computed from the time of the termination of a settlor's power to revoke the trust;
(3) the future interest or trust suspends the power of alienation of the property, the future interest or trust is created by the exercise of a presently exercisable general power of appointment, whether by will or otherwise, and the suspension of the power of alienation is for a period of at least 30 years after the death of an individual alive at the time of the creation of the future interest or trust as computed from the time of creation of the presently exercisable power of appointment; or
(4) the future interest or trust suspends the power of alienation of the property, the future interest or trust is created by the exercise of a nongeneral or testamentary general power of appointment, and the suspension of the power of alienation is for a period of at least 30 years after the death of an individual alive at the time of the creation of the future interest or trust as computed from the time of creation of the original instrument or conveyance creating the original power of appointment that was exercised to create a new or successive nongeneral or testamentary general power of appointment.
(b) For purposes of (a) of this section, the power of alienation
(1) is suspended if there is no person alive who, alone or in combination with others, can, as to property that is part of the future interest or trust, convey
(A) title to real property in fee; or
(B) complete ownership of personal property;
(2) is not suspended by a future interest or trust or by an equitable interest in a trust if
(A) the trustee of the trust has power, either express or implied, to sell the property; or
(B) at least one person alive at the time the trust was created has an unlimited power to terminate the trust.
(c) The provisions of (a) of this section do not apply to a transfer
(1) made outright or in trust for a charitable purpose;
(2) to a literary or charitable organization;
(3) to a veterans' memorial organization; or
(4) to a cemetery corporation, society, or association.
|
