The bill amends the "Uniform Statutory Rule Against Perpetuities" by making several key changes to sections 3, 5, and 6. Notably, it specifies that the time of creation of a nonvested property interest or a power of appointment must be determined by statutory or common law, rather than the previous phrasing. 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 distinction for interests and powers arising from transfers to previously funded trusts.

Furthermore, the bill outlines exceptions to the applicability of section 2, including various types of nonvested property interests and powers of appointment, and it establishes that a period of 360 years must be used instead of 90 years for certain determinations under the personal property trust perpetuities act. It also clarifies that the act applies to nonvested property interests or powers of appointment created after December 26, 1988, and provides a mechanism for reforming dispositions that violate the rule against perpetuities if they were created before that date.

Statutes affected:
House Introduced Bill: 554.73, 554.75