SC H3432

Extends the rule against perpetuities from 90 years to 360 years, allowing nonvested property interests and powers of appointment to remain valid for a longer period before they must vest or terminate

Allows trustees of irrevocable trusts to reimburse grantors for personal income tax liability attributable to trust income when the grantor is treated as the owner for tax purposes under IRC Section 671

Clarifies that a trust beneficiary holding or exercising a testamentary power of appointment cannot be considered a settlor or deemed to have transferred their interest in the trust

Protects trust assets from creditor claims by specifying that a trustee's discretionary authority to reimburse a settlor for taxes is not considered an amount distributable for the settlor's benefit

Prohibits trustees from exercising tax reimbursement powers if they are treated as the trust owner, are a beneficiary, or are a related/subordinate party to such persons