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AL SB105
Bill
AI Summary
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Adopts the Uniform Statutory Rule Against Perpetuities as Alabama law, replacing the common law rule against perpetuities for interests created on or after January 1, 2012.
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Establishes a 100-year vesting period for nonvested property interests in real and personal property (other than trusts), replacing the traditional "life in being plus 21 years" standard.
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Allows trusts to have a maximum duration of 360 years, provided the trust is governed by Alabama law and the trustee has power to sell, lease, and mortgage property.
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Permits circuit courts to reform dispositions that violate the rule 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 provides exemptions for certain property interests including charitable gifts, employee benefit plans, and nondonative transfers.
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duration of interests prior to vesting, Uniform Statutory Rule Against Perpetuities adopted, common law rule repealed, real and personal property to vest in 100 years, trust up to 360 years, Secs. 35-4A-421 to 35-4A-428, inclusive, added; Sec. 35-4-4 repealed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
Pending third reading on day 24 Favorable from Judiciary
5/5/2011