The bill amends the Arkansas Code concerning the rule against perpetuities, specifically updating the time limits for nonvested property interests and powers of appointment. The current law's stipulation that such interests must vest or terminate within 90 years is replaced with a new requirement that they must do so within 365 years. This change applies to various types of property interests and powers of appointment, ensuring that they remain valid under the updated timeframe. Additionally, the bill allows for the reformation of dispositions that become invalid under the new rule, provided they are reformed within the 365-year limit.

Furthermore, the bill modifies the effective date for the application of these rules, stating that they apply to interests created on or after the act's effective date, rather than a specific past date. It also repeals a section that aimed to promote uniformity in the application and construction of the law across states. Overall, the bill seeks to modernize the rule against perpetuities in Arkansas by extending the allowable duration for property interests and clarifying the reformation process for invalid interests.

Statutes affected:
Old version HB1339 V2 - 2-20-2023 11:34 AM: 18-3-101(a)
HB 1339: 18-3-101(a)
Act 719: 18-3-101(a)