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A BILL TO BE ENTITLED
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AN ACT
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relating to the rule against perpetuities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 112.036, Property Code, is amended to |
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read as follows: |
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Sec. 112.036. RULE AGAINST PERPETUITIES. (a) The rule |
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against perpetuities applies to an interest in a trust [trusts] |
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other than a charitable trust [trusts]. |
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(b) For purposes of this section, the effective date of a |
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trust is the date the trust becomes irrevocable. |
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(c) An interest in a trust must vest, if at all: |
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(1) not later than 300 years after the effective date |
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of the trust, if the effective date of the trust is on or after |
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September 1, 2021; or |
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(2) except as provided by Subsection (d), |
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[Accordingly, an interest is not good unless it must vest, if at |
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all,] not later than 21 years after some life in being at the time of |
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the creation of the interest, plus a period of gestation, if the |
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effective date of the trust is before September 1, 2021. |
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(d) An interest in a trust that has an effective date before |
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September 1, 2021, may vest as described by Subsection (c)(1) if the |
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trust instrument provides that an interest in the trust vests under |
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the provisions of this section applicable to trusts on the date that |
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the interest vests. |
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(e) Any interest in a trust may[, however,] be reformed or |
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construed to the extent and as provided by Section 5.043. |
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SECTION 2. This Act takes effect September 1, 2021. |