The bill amends the Uniform Statutory Rule Against Perpetuities, specifically targeting sections 3, 5, and 6. Key changes include the requirement that the time of creation of a nonvested property interest or power of appointment "must" be determined by statutory or common law, replacing the previous wording "shall." Additionally, the bill clarifies that a nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates, and it introduces a new definition for "second power" as it relates to the personal property trust perpetuities act.

Furthermore, the bill specifies that the act applies to nonvested property interests or powers of appointment created on or after December 26, 1988, and allows for the reformation of dispositions that violate the rule against perpetuities if they were created before this date. The bill also establishes that a period of 360 years must be used instead of 90 years for certain determinations under the personal property trust perpetuities act. These amendments aim to clarify the application of the rule against perpetuities and ensure that property interests are managed in accordance with the updated legal framework.

Statutes affected:
House Introduced Bill: 554.73, 554.75