HF 1098

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to property interests; amending the Uniform 
  1.3             Statutory Rule Against Perpetuities; limiting the 
  1.4             effect of certain language in trust instruments; 
  1.5             amending Minnesota Statutes 1998, section 501A.01. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 501A.01, is 
  1.8   amended to read: 
  1.9      501A.01 [WHEN NONVESTED INTEREST, POWERS OF APPOINTMENT ARE 
  1.10  INVALID; EXCEPTIONS.] 
  1.11     (a) [VALIDITY OF NONVESTED PROPERTY INTEREST.] A nonvested 
  1.12  property interest is invalid unless: 
  1.13     (1) when the interest is created, it is certain to vest or 
  1.14  terminate no later than 21 years after the death of an 
  1.15  individual then alive; or 
  1.16     (2) the interest either vests or terminates within 90 years 
  1.17  after its creation. 
  1.18     (b) [VALIDITY OF GENERAL POWER OF APPOINTMENT SUBJECT TO A 
  1.19  CONDITION PRECEDENT.] A general power of appointment not 
  1.20  presently exercisable because of a condition precedent is 
  1.21  invalid unless: 
  1.22     (1) when the power is created, the condition precedent is 
  1.23  certain to be satisfied or become impossible to satisfy no later 
  1.24  than 21 years after the death of an individual then alive; or 
  1.25     (2) the condition precedent either is satisfied or becomes 
  2.1   impossible to satisfy within 90 years after its creation. 
  2.2      (c) [VALIDITY OF NONGENERAL OR TESTAMENTARY POWER OF 
  2.3   APPOINTMENT.] A nongeneral power of appointment or a general 
  2.4   testamentary power of appointment is invalid unless: 
  2.5      (1) when the power is created, it is certain to be 
  2.6   irrevocably exercised or otherwise to terminate no later than 21 
  2.7   years after the death of an individual then alive; or 
  2.8      (2) the power is irrevocably exercised or otherwise 
  2.9   terminates within 90 years after its creation. 
  2.10     (d) [POSSIBILITY OF POST-DEATH CHILD DISREGARDED.] In 
  2.11  determining whether a nonvested property interest or a power of 
  2.12  appointment is valid under subsection (a)(1), (b)(1), or (c)(1), 
  2.13  the possibility that a child will be born to an individual after 
  2.14  the individual's death is disregarded. 
  2.15     (e) [EFFECT OF CERTAIN "LATER-OF" TYPE LANGUAGE.] If, in 
  2.16  measuring a period from the creation of a trust or other 
  2.17  property arrangement, language in a governing instrument (i) 
  2.18  seeks to disallow the vesting or termination of any interest or 
  2.19  trust beyond, (ii) seeks to postpone the vesting or termination 
  2.20  of any interest or trust until, or (iii) seeks to operate in 
  2.21  effect in any similar fashion upon, the later of (A) the 
  2.22  expiration of a period of time not exceeding 21 years after the 
  2.23  death of the survivor of specified lives in being at the 
  2.24  creation of the trust or other property arrangement or (B) the 
  2.25  expiration of a period of time that exceeds or might exceed 21 
  2.26  years after the death of the survivor of lives in being at the 
  2.27  creation of the trust or other property arrangement, that 
  2.28  language is inoperative to the extent it produces a period of 
  2.29  time that exceeds 21 years after the death of the survivor of 
  2.30  the specified lives.