§525-1 - Statutory rule against perpetuities.

[§525-1]  Statutory rule against
perpetuities.  (a)  A nonvested property interest is invalid unless:

(1)  When the interest is created, it is certain to
vest or terminate no later than twenty-one years after the death of an
individual then alive; or

(2)  The interest either vests or terminates within
ninety years after its creation.

(b)  A general power of appointment not
presently exercisable because of a condition precedent is invalid unless:

(1)  When 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 an individual then alive; or

(2)  The condition precedent either is satisfied or
becomes impossible to satisfy within ninety years after its creation.

(c)  A nongeneral power of appointment or a
general testamentary power of appointment is invalid unless:

(1)  When the power is created, it is certain to be
irrevocably exercised or otherwise to terminate no later than twenty-one years
after the death of an individual then alive; or

(2)  The power is irrevocably exercised or otherwise
terminates within ninety years after its creation.

(d)  In determining whether a nonvested
property interest or a power of appointment is valid under subsection (a)(1),
(b)(1), or (c)(1), the possibility that a child will be born to an individual
after the individual's death is disregarded.

(e)  If, in measuring a period from the
creation of a trust or other property arrangement, language in a governing
instrument either seeks to disallow the vesting or termination of any interest
or trust beyond, seeks to postpone the vesting or termination of any interest
or trust until, or seeks to operate in effect in any similar fashion upon, the
later of:

(1)  The expiration of a period of time not exceeding
twenty-one years after the death of the survivor of specified lives in being at
the creation of the trust or other property arrangement; or

(2)  The expiration of a period of time that exceeds
or might exceed twenty-one years after the death of the survivor of lives in
being at the creation of the trust or other property arrangement;

that language is inoperative to the extent it
produces a period of time that exceeds twenty-one years after the death of the
survivor of the specified lives. [L 1992, c 262, pt of §2]