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 ENROLLED ACT No. 1209
AN ACT to amend the Indiana Code concerning property.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 30-4-5-26 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 26. (a) If the trustee has the full, unrestricted power
to alienate trust property and the trust expressly states that this
exception applies to the trust, IC 32-17-8-3 shall apply to a
nonvested property interest or power of appointment contained in
the trust by substituting three hundred sixty (360) years instead of
ninety (90) years in each place where the term appears in
IC 32-17-8-3, unless the terms of the trust require that all
beneficial interests in the trust vest or terminate within a lesser
period.
(b) When a power of appointment in a trust ("first power") is
exercised to create another power of appointment ("second
power"), then a nonvested property interest or second power
created through the exercise of the first power is considered to
have been created at the time of irrevocable exercise of the first
power, unless the instrument exercising the first power provides
that the second power was created at the time of creation of the
first power.
SECTION 2. IC 32-17-8-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) A nonvested
property interest is valid if:
HEA 1209 2
(1) when the interest is created, the interest is certain to vest or
terminate not later than twenty-one (21) years after the death of
an individual then alive; or
(2) the interest either vests or terminates within ninety (90) years
after the interest's creation. three hundred sixty (360) years
after the interest's creation, unless the terms of the trust
require that all beneficial interests in the trust vest or
terminate within a lesser period of time.
(b) A general power of appointment not presently exercisable
because of a condition precedent is valid if:
(1) when the power is created, the condition precedent is certain
to be satisfied or become impossible to satisfy not later than
twenty-one (21) years after the death of an individual then alive;
or
(2) the condition precedent either is satisfied or becomes
impossible to satisfy within ninety (90) years after the condition
precedent's creation. three hundred sixty (360) years after the
condition precedent's creation, unless the terms of the trust
require that all beneficial interests in the trust vest or
terminate within a lesser period of time.
(c) A nongeneral power of appointment or a general testamentary
power of appointment is valid if:
(1) when the power is created, the power is certain to be
irrevocably exercised or otherwise to terminate not later than
twenty-one (21) years after the death of an individual then alive;
or
(2) the power is irrevocably exercised or otherwise terminates
within ninety (90) years after the power's creation. three hundred
sixty (360) years after the power's creation, unless the terms
of the trust require that all beneficial interests in the trust vest
or terminate within a lesser period of time.
(d) In determining whether a nonvested property interest or a power
of appointment is valid under subsection (a)(1), (b)(1), or (c)(1), the
possibility that a child will be born to an individual after the
individual's death is disregarded.
SECTION 3. IC 32-17-8-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 3.5. When the initial power of appointment in a
legacy trust is exercised to create a second power of appointment,
a nonvested property interest or the second power of appointment
created through the exercise of the initial power of appointment is
considered to have been created at the time of the irrevocable
HEA 1209 3
exercise of the initial power of appointment, unless the instrument
exercising the initial power of appointment provides that the
second power of appointment was created at the time of the
creation of the initial power of appointment.
SECTION 4. IC 32-17-8-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6. Upon the petition of
an interested person, a court shall reform a disposition in the manner
that most closely preserves the transferor's plan of distribution and is
within the ninety (90) three hundred sixty (360) years allowed by
section 3(a)(2), 3(b)(2), or 3(c)(2) of this chapter if:
(1) a nonvested property interest or a power of appointment
becomes invalid under section 3 of this chapter;
(2) a class gift is not but might become invalid under section 3 of
this chapter and the time has arrived when the share of any class
member is to take effect in possession or enjoyment; or
(3) a nonvested property interest that is not validated by section
3(a)(1) of this chapter can vest but not within ninety (90) three
hundred sixty (360) years after the interest's creation.
HEA 1209 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1209