SB 721 Summary

• Adds Section 2a establishing an exception to the anti-Delaware-tax-trap provision when specific conditions are met regarding powers of appointment over personal property held in trust.

• Allows the anti-Delaware-tax-trap rule (uniform statutory rule against perpetuities for second powers) to be bypassed if the first power creating the second power was not itself created by exercise of another power and the instrument expressly declares the exception applies.

• Simplifies Section 3 by removing the previous subsection (3) that contained the anti-Delaware-tax-trap language and relocating those provisions to the new Section 2a with modified application rules.

• Permits indefinite suspension of vesting of future interests, powers of appointment, and accumulations of income for personal property held in trust, subject to the anti-Delaware-tax-trap rules in Section 2a.