Text: HF00533 Text: HF00535 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 557.7, Code 2001, is amended to read as 1 2 follows: 1 3 557.7 CONTINGENT REMAINDERS. 1 4 A contingent remainder shall take effect, notwithstanding 1 5 any determination of the particular estate, in the same manner 1 6 in which it would have taken effect if it had been an 1 7 executory devise or a springing or shifting use, and shall, as1 8well as such limitations, be subject to the rule respecting1 9remoteness known as the rule against perpetuities, exclusive1 10of any other supposed rule respecting limitations to1 11successive generations or double possibilities. 1 12 Sec. 2. Section 558.68, Code 2001, is amended by striking 1 13 the section and inserting in lieu thereof the following: 1 14 588.68 NO RULE AGAINST PERPETUITIES. 1 15 As of July 1, 2001, there shall be no rule against 1 16 perpetuities or remoteness of vesting. 1 17 Sec. 3. Section 633.2102, subsection 1, paragraph c, Code 1 18 2001, is amended to read as follows: 1 19 c. Unless the trust is a charitable trust, an honorary 1 20 trust, or a trust for the care of an animal, the trust has a 1 21 definite beneficiaryor a beneficiary who will be definitely1 22ascertained within the period of the applicable rule against1 23perpetuities. 1 24 Sec. 4. Section 633.4402, subsection 5, Code 2001, is 1 25 amended to read as follows: 1 26 5. Acquire or dispose of property, for cash or on credit, 1 27 at public or private sale, or by exchange. By specific 1 28 provision in the trust instrument, the settlor may provide 1 29 that the trustee not sell one or more specified parcels of 1 30 real property held in the trust for a period not to exceed 1 31 ninety years from the date the trust instrument becomes 1 32 irrevocable. After the expiration of such period, the trustee 1 33 shall have the power to sell such real property. 1 34 Sec. 5. APPLICABILITY. This Act applies to all interests 1 35 in existence on or created after July 1, 2001. 2 1 EXPLANATION 2 2 This bill strikes Code section 558.68, relating to future 2 3 interests in property, and replaces it with a statement that 2 4 there shall be no rule against perpetuities or remoteness of 2 5 vesting. The common-law rule against perpetuities, which 2 6 current Code section 558.68 is based upon, is aimed at 2 7 invalidating interests in property that are intended to belong 2 8 to a person at some point in the future, but for which the 2 9 actual determination of ownership cannot or will not be 2 10 accomplished within a specified period of time. The basic 2 11 rule states that a nonvested interest in property is invalid 2 12 unless it must vest, if at all, within 21 years after one or 2 13 more lives in being at the creation of the interest and any 2 14 relevant period of gestation. Current law states that this 2 15 rule shall be measured by actual events rather than possible 2 16 events in situations which would provide validation, and 2 17 further provides for judicial reformation of a nonvested 2 18 interest violating the rule to most closely approximate the 2 19 creator's intention with regard to the interest. The bill 2 20 applies to all interests in existence on or created after July 2 21 1, 2001. 2 22 LSB 1940HH 79 2 23 rh/pj/5.1
Text: HF00533 Text: HF00535 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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