The bill amends several sections of the Code of West Virginia regarding the statutory rule against perpetuities, specifically addressing the treatment of future interests created through nongeneral or testamentary powers of appointment. It establishes that such interests will be treated as if they were created at the time of the first power of appointment. Additionally, the bill introduces a provision that allows for a nonvested property interest or power of appointment contained in a trust created on or after July 1, 2025, to have a vesting period of up to 1,000 years instead of the standard 90 years, unless the trust specifies a shorter period.

Furthermore, the bill clarifies the timing of when nonvested property interests or powers of appointment are created, particularly in relation to existing trusts and powers of appointment. It also includes provisions for the application of these rules to interests created before the effective date of the bill, allowing for judicial reform of dispositions that violate the previous rule against perpetuities. The overall aim of the legislation is to create uniformity in the application and construction of the law regarding perpetuities across states that enact similar statutes.

Statutes affected:
Introduced Version: 36-1A-1, 36-1A-2, 36-1A-5, 36-1A-6, 36-1A-7
Committee Substitute: 36-1A-1, 36-1A-2, 36-1A-5, 36-1A-6, 36-1A-7
Engrossed Committee Substitute: 36-1A-1, 36-1A-2, 36-1A-5, 36-1A-6, 36-1A-7
Enrolled Committee Substitute: 36-1A-1, 36-1A-2, 36-1A-5, 36-1A-6, 36-1A-7