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AL HB28
Bill
Status
6/2/2011
Primary Sponsor
Demetrius Newton
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AI Summary
HB28 Summary
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Enacts the Alabama Uniform Statutory Rule Against Perpetuities by adding Chapter 4A to Title 35, establishing that nonvested property interests must vest or terminate within 21 years after an individual's death or within 100 years of creation.
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Allows trusts to have a maximum duration of 360 years if governed by Alabama law and the trust instrument includes trustee powers to sell, lease, and mortgage all trust property.
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Applies to nonvested property interests and powers of appointment created on or after January 1, 2012, with specific exceptions for fiduciary powers, charitable interests, employment benefit plans, and certain property transfers.
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Permits circuit courts to reform dispositions that violate the rule against perpetuities to approximate the transferor's distribution plan within the 100-year or 360-year limits.
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Repeals Section 35-4-4 of the Code of Alabama 1975 and supersedes the common-law rule against perpetuities, effective January 1, 2012.
Legislative Description
Real and personal property, rule against perpetuities, duration of interests prior to vesting, Uniform Statutory Rule Against Perpetuities adopted, common law rule repealed, real and personal property to vest in 100 years, trust up to 360 years, Secs. 35-4A-421 to 35-4A-428, inclusive, added; Sec. 35-4-4 repealed
Property, Real and Personal
Last Action
Forwarded to Governor at 6:50 p.m. on June 2, 2011.
6/2/2011