14-2901. Nonvested property interest; general
power of appointment; validity; exception
A. A nonvested property interest is invalid unless at least one of the following is
true:
1. At the time the interest is created it is certain to vest or to terminate not
later than twenty-one years after the death of a person who is then alive.
2. The interest either vests or terminates within five hundred years after its
creation.
3. The interest is under a trust whose trustee has the expressed or implied power
to sell the trust assets and at one or more times after the creation of the interest one
or more persons who are living when the trust is created have an unlimited power to
terminate the interest.
B. A general power of appointment that is not presently exercisable because of a
condition precedent is invalid unless any of the following is true:
1. At the time the power is created the condition precedent is certain to be
satisfied or becomes impossible to satisfy no later than twenty-one years after the death
of a person who is then alive.
2. The condition precedent either is satisfied or becomes impossible to satisfy
within five hundred years after its creation.
3. The power is with respect to an interest under a trust whose trustee has the
expressed or implied power to sell the trust assets and at one or more times after the
creation of the interest one or more persons who are living when the trust is created
have an unlimited power to terminate the interest.
C. A nongeneral power of appointment or a general testamentary power of appointment
is invalid unless at least one of the following is true:
1. At the time the power is created it is certain to be irrevocably exercised or
otherwise to terminate not later than twenty-one years after the death of a person who is
then alive.
2. The power is irrevocably exercised or otherwise terminates within five hundred
years after its creation.
3. The power is with respect to an interest under a trust whose trustee has the
expressed or implied power to sell the trust assets and at one or more times after the
creation of the interest one or more persons who are living when the trust is created
have an unlimited power to terminate the interest.
D. In determining whether a nonvested property interest or a power of appointment
is valid under subsection A, paragraph 1, subsection B, paragraph 1 or subsection C,
paragraph 1, the possibility that a child will be born to a person after that person's
death is disregarded.
E. If the governing instrument seeks to do either of the following after the
expiration of the latest period described by subsection A, B or C, that language is
inoperative to the extent it produces a period of time that exceeds five hundred years
after the creation of the trust:
1. Disallow the vesting or termination of an interest or trust beyond that time.
2. Postpone the vesting or termination of an interest or trust until that time.
|