Introduced Version
HOUSE BILL No. 1209
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 32-17-8.
Synopsis: Rule against perpetuities. Extends the period of time for
which certain nonvested property interests are valid from 90 years to
360 years after the interest is created. Extends the period of time for
which certain powers of appointment are valid under specified
conditions from 90 years to 360 years. Makes conforming changes.
Effective: July 1, 2024.
Heine, Snow
January 9, 2024, read first time and referred to Committee on Judiciary.
2024 IN 1209—LS 6543/DI 149 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1209
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 32-17-8-3 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) A nonvested
3 property interest is valid if:
4 (1) when the interest is created, the interest is certain to vest or
5 terminate not later than twenty-one (21) years after the death of
6 an individual then alive; or
7 (2) the interest either vests or terminates within ninety (90) three
8 hundred sixty (360) years after the interest's creation.
9 (b) A general power of appointment not presently exercisable
10 because of a condition precedent is valid if:
11 (1) when the power is created, the condition precedent is certain
12 to be satisfied or become impossible to satisfy not later than
13 twenty-one (21) years after the death of an individual then alive;
14 or
15 (2) the condition precedent either is satisfied or becomes
16 impossible to satisfy within ninety (90) three hundred sixty
17 (360) years after the condition precedent's creation.
2024 IN 1209—LS 6543/DI 149 2
1 (c) A nongeneral power of appointment or a general testamentary
2 power of appointment is valid if:
3 (1) when the power is created, the power is certain to be
4 irrevocably exercised or otherwise to terminate not later than
5 twenty-one (21) years after the death of an individual then alive;
6 or
7 (2) the power is irrevocably exercised or otherwise terminates
8 within ninety (90) three hundred sixty (360) years after the
9 power's creation.
10 (d) In determining whether a nonvested property interest or a power
11 of appointment is valid under subsection (a)(1), (b)(1), or (c)(1), the
12 possibility that a child will be born to an individual after the
13 individual's death is disregarded.
14 SECTION 2. IC 32-17-8-6 IS AMENDED TO READ AS
15 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6. Upon the petition of
16 an interested person, a court shall reform a disposition in the manner
17 that most closely preserves the transferor's plan of distribution and is
18 within the ninety (90) three hundred sixty (360) years allowed by
19 section 3(a)(2), 3(b)(2), or 3(c)(2) of this chapter if:
20 (1) a nonvested property interest or a power of appointment
21 becomes invalid under section 3 of this chapter;
22 (2) a class gift is not but might become invalid under section 3 of
23 this chapter and the time has arrived when the share of any class
24 member is to take effect in possession or enjoyment; or
25 (3) a nonvested property interest that is not validated by section
26 3(a)(1) of this chapter can vest but not within ninety (90) three
27 hundred sixty (360) years after the interest's creation.
2024 IN 1209—LS 6543/DI 149