The bill amends the Uniform Statutory Rule Against Perpetuities, specifically sections 3 and 5 of 1988 PA 418. It clarifies the determination of the time of creation for nonvested property interests and powers of appointment, stating that such interests must be determined by statutory or common law. The bill introduces new language to specify that a nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates, and it also modifies the conditions under which these interests arise from transfers to existing trusts or property arrangements.

Additionally, the bill outlines exceptions to the applicability of section 2, including various types of nonvested property interests and powers of appointment arising from nondonative transfers, fiduciary powers, and certain marital agreements. It also establishes that if section 2 applies to an interest or power created by the exercise of a second power, a period of 360 years must be used instead of the standard 90 years to determine compliance with the rule against perpetuities. The enactment of this bill is contingent upon the passage of House Bill No. 4033.

Statutes affected:
House Introduced Bill: 554.73, 554.75