59-3401. Statutory rule against perpetuities.
59-3401
59-3401. Statutory rule against perpetuities.(a) Validity of Nonvested Property Interest. Anonvestedproperty interest is invalid unless:
(1) When the interest is created, it is certain to vest or terminate nolater than 21 years after the death of an individual then alive; or
(2) the interest either vests or terminates within 90 years after itscreation.
(b) Validity of General Power of Appointment Subject to a ConditionPrecedent. A general power of appointment not presently exercisable becauseof a condition precedent is invalid unless:
(1) When the power is created, the condition precedent is certain to besatisfied or becomes impossible to satisfy no later than 21 years after thedeath of an individual then alive; or
(2) the condition precedent either is satisfied or becomes impossible tosatisfy within 90 years after its creation.
(c) Validity of Nongeneral or Testamentary Power of Appointment. Anongeneral power of appointment or a general testamentary power of appointmentis invalid unless:
(1) When the power is created, it is certain to be irrevocably exercised orotherwise to terminate no later than 21 years after the death of an individualthen alive; or
(2) the power is irrevocably exercised or otherwise terminates within 90years after its creation.
(d) Possibility of Post-death Child Disregarded. In determining whethera nonvested property interest or a power of appointment is valid undersubsection (a)(1), (b)(1) or (c)(1), the possibility that a child will be bornto an individual after the individual's death is disregarded.
(e) Effect of Certain "Later-of" Type Language. If, in measuring aperiodfrom the creation of a trust or other property arrangement, language in agoverning instrument (i) seeks to disallow the vesting or termination of anyinterest or trust beyond, (ii) seeks to postpone the vesting or termination ofany interest or trust until, or (iii) seeks to operate in effect in any similarfashion upon, the later of (A) the expiration of a period of time not exceeding21 years after the death of the survivor of specified lives in being at thecreation of the trust or other property arrangement or (B) the expiration of aperiod of time that exceeds or might exceed 21 years after the death of thesurvivor of lives in being at the creation of the trust or other propertyarrangement, that language is inoperative to the extent it produces a period oftime that exceeds 21 years after the death of the survivor of the specifiedlives.
History: L. 1992, ch. 302, § 1; July 1.