| 1 | 1 | | 86R170 AJA-F |
|---|
| 2 | 2 | | By: Burrows H.B. No. 3744 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the rule against perpetuities. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Section 112.036, Property Code, is amended to |
|---|
| 10 | 10 | | read as follows: |
|---|
| 11 | 11 | | Sec. 112.036. RULE AGAINST PERPETUITIES. (a) The rule |
|---|
| 12 | 12 | | against perpetuities applies to an interest in a trust [trusts] |
|---|
| 13 | 13 | | other than a charitable trust [trusts]. |
|---|
| 14 | 14 | | (b) For purposes of this section, the effective date of a |
|---|
| 15 | 15 | | trust is the date the trust becomes irrevocable. |
|---|
| 16 | 16 | | (c) An interest in a trust must vest, if at all: |
|---|
| 17 | 17 | | (1) not later than 300 years after the effective date |
|---|
| 18 | 18 | | of the trust, if the effective date of the trust is on or after |
|---|
| 19 | 19 | | September 1, 2019; or |
|---|
| 20 | 20 | | (2) except as provided by Subsection (d), |
|---|
| 21 | 21 | | [Accordingly, an interest is not good unless it must vest, if at |
|---|
| 22 | 22 | | all,] not later than 21 years after some life in being at the time of |
|---|
| 23 | 23 | | the creation of the interest, plus a period of gestation, if the |
|---|
| 24 | 24 | | effective date of the trust is before September 1, 2019. |
|---|
| 25 | 25 | | (d) An interest in a trust that has an effective date before |
|---|
| 26 | 26 | | September 1, 2019, may vest as described by Subsection (c)(1) if the |
|---|
| 27 | 27 | | trust instrument provides that an interest in the trust vests under |
|---|
| 28 | 28 | | the provisions of this section applicable to trusts on the date |
|---|
| 29 | 29 | | that the interest vests. |
|---|
| 30 | 30 | | (e) Any interest in a trust may[, however,] be reformed or |
|---|
| 31 | 31 | | construed to the extent and as provided by Section 5.043. |
|---|
| 32 | 32 | | SECTION 2. This Act takes effect September 1, 2019. |
|---|