82R2542 TJS-F

By: Hartnett H.B. No. 372

A BILL TO BE ENTITLED

AN ACT

relating to the rule against perpetuities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 112.036, Property Code, is amended to

read as follows:

Sec. 112.036. RULE AGAINST PERPETUITIES. (a) The rule

against perpetuities applies to an interest in a trust [trusts]

other than a charitable trust [trusts].

(b) For purposes of this section, the effective date of a

trust is the date the trust becomes irrevocable.

(c) An interest in a trust must vest, if at all:

(1) not later than 200 years after the effective date

of the trust, if the effective date of the trust is on or after

September 1, 2011; or

(2) except as provided by Subsection (d),

[Accordingly, an interest is not good unless it must vest, if at

all,] not later than 21 years after some life in being at the time of

the creation of the interest, plus a period of gestation, if the

effective date of the trust is before September 1, 2011.

(d) An interest in a trust that has an effective date before

September 1, 2011, may vest as described by Subsection (c)(1) if the

trust instrument provides that an interest in the trust vests under

the provisions of this section applicable to trusts on the date

that the interest vests.

(e) Any interest in a trust may[, however,] be reformed or

construed to the extent and as provided by Section 5.043.

SECTION 2. This Act takes effect September 1, 2011.