Enrolled Bill Summary

House Bill 654	House Author:  Lucio III et al.
Effective:  9-1-21	Senate Sponsor:  Johnson et al.

            House Bill 654 amends the Property Code to change the rule against perpetuities by extending the maximum duration of a noncharitable trust to 300 years, with that period beginning on the trust's effective date, which is the date the trust becomes irrevocable. This extension applies to trusts that have an effective date on or after September 1, 2021, but other trusts may vest under the new rule if the trust instrument provides that an interest in the trust vests under the rule against perpetuities applicable to trusts on the date the interest vests. The bill establishes that a settlor of a trust may not direct that a real property asset be retained or refuse that a real property asset may be sold for a period longer than 100 years.