75-2-1206 - Exclusions from statutory rule against perpetuities.
75-2-1206. Exclusions from statutory rule against perpetuities.
Section 75-2-1203 does not apply to:
(1) a nonvested property interest or a power of appointment arising out of a nondonativetransfer, except a nonvested property interest or a power of appointment arising out of:
(a) a premarital or postmarital agreement;
(b) a separation or divorce settlement;
(c) a spouse's election;
(d) a similar arrangement arising out of a prospective, existing, or previous maritalrelationship between the parties;
(e) a contract to make or not to revoke a will or trust;
(f) a contract to exercise or not to exercise a power of appointment;
(g) a transfer in satisfaction of a duty of support; or
(h) a reciprocal transfer;
(2) a fiduciary's power relating to the administration or management of assets, includingthe power of a fiduciary to sell, lease, or mortgage property, and the power of a fiduciary todetermine principal and income;
(3) a power to appoint a fiduciary;
(4) a discretionary power of a trustee to distribute principal before termination of a trustto a beneficiary having an indefeasibly vested interest in the income and principal;
(5) a nonvested property interest held by a charity, government, or governmental agencyor subdivision, if the nonvested property interest is preceded by an interest held by anothercharity, government, or governmental agency or subdivision;
(6) a nonvested property interest in or a power of appointment with respect to a trust orother property arrangement forming part of a pension, profit-sharing, stock bonus, health,disability, death benefit, income deferral, or other current or deferred benefit plan for one or moreemployees, independent contractors, or their beneficiaries or spouses, to which contributions aremade for the purpose of distributing to or for the benefit of the participants or their beneficiariesor spouses the property, income, or principal in the trust or other property arrangement, except anonvested property interest or a power of appointment that is created by an election of aparticipant or a beneficiary or spouse;
(7) a property interest, power of appointment, or arrangement that was not subject to thecommon-law rule against perpetuities or is excluded by another statute of this state; or
(8) a property interest or arrangement subjected to a time limit under Section 75-2-1001.
Enacted by Chapter 39, 1998 General Session