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2013 SESSION

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SB 756 Perpetuities waiver; exclusions from statutory rule, nondonative transfers.

Introduced by: John S. Edwards | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Rule against perpetuities waiver. Corrects errors in the rule allowing a settlor of a trust with an interest in personal property to opt out of the Uniform Statutory Rule Against Perpetuities. The bill moves the opt-out provision from the Code section that applies to nondonative transfers to the section that lists other exceptions to the application of the Uniform Rule. The bill also specifies that the exception to the Uniform Rule shall not extend to an interest in real property, which does not include an interest in a corporation, limited liability company, partnership, business trust, or other entity, even if such entity owns an interest in real property. The bill further provides that the provisions of the bill are declarative of existing law.

SUMMARY AS INTRODUCED:

Rule against perpetuities waiver. Corrects errors in the rule allowing a settlor of a trust to opt out of the Uniform Statutory Rule Against Perpetuities. First, under current law, the opt-out rule is part of a Code section that applies to nondonative transfers. Moving the opt-out rule to the Code section for exclusions to the Uniform Rule makes it clear that the opt-out rule applies to donative transfers. Second, the bill clarifies that an interest in a corporation, partnership, limited liability company, business trust, or similar entity that invests in real estate is not an interest in real property. Third, the bill clarifies that those portions of a trust that consist of personal property remain exempt from the Uniform Rule if there is an opt-out provision in the trust, even if the trustee acquires a real property interest. The bill is declarative of existing law.