87R1854 MWC-F
 
  By: Lucio III, Burrows, Allison, Leach H.B. No. 654
 
 
 
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 300 years after the effective date
  of the trust, if the effective date of the trust is on or after
  September 1, 2021; 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, 2021.
         (d)  An interest in a trust that has an effective date before
  September 1, 2021, 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, 2021.