HB 1553 Summary

• Creates the "Statutory Rule Against Perpetuities Act" establishing that nonvested property interests and powers of appointment must vest or terminate within 21 years after death of a measuring life, or within 500 years of creation.

• Modifies rules on suspension of alienation in trusts by specifying that power of alienation is not suspended if a trustee has express or implied power to sell trust property.

• Amends the duration limits for express trusts from 21 years or lives in being to comply with the 500-year perpetuities period under the new statutory rule.

• Provides court authority to reform dispositions that violate the rule against perpetuities to approximate the transferor's intent within the allowable 500-year period.

• Exempts certain property interests from the rule including nondonative transfers, fiduciary powers, charitable gifts, and employee benefit plans; applies prospectively to interests created on or after November 1, 2013.