Text: HF00449 Text: HF00451 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 450 1 2 1 3 AN ACT 1 4 CREATING AN EXCEPTION TO THE STATUTORY RULE AGAINST PERPETUITIES 1 5 AND MAKING RELATED CHANGES. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 557.7, Code 2003, is amended to read as 1 10 follows: 1 11 557.7 CONTINGENT REMAINDERS. 1 12AExcept as provided in section 558.68A, a contingent 1 13 remainder shall take effect, notwithstanding any determination 1 14 of the particular estate, in the same manner in which it would 1 15 have taken effect if it had been an executory devise or a 1 16 springing or shifting use, and shall, as well as such 1 17 limitations, be subject to the rule respecting remoteness 1 18 known as the rule against perpetuities, exclusive of any other1 19supposed rule respecting limitations to successive generations1 20or double possibilities. 1 21 Sec. 2. NEW SECTION. 558.68A EXCEPTION TO RULE AGAINST 1 22 PERPETUITIES. 1 23 1. Notwithstanding section 558.68, a rule of law against 1 24 perpetuities, a suspension of the power of alienation of the 1 25 title to property, or a law restricting or limiting the 1 26 duration of trusts shall not apply with respect to any 1 27 interest in real or personal property held in trust if the 1 28 instrument creating the trust specifically states that such 1 29 rule or the provisions of section 558.68 shall not apply to 1 30 the trust and if either the trustee of the trust has unlimited 1 31 power to sell all trust assets, or one or more persons, one of 1 32 whom may be the trustee, has unlimited power to terminate the 1 33 entire trust. 1 34 2. A trust of real or personal property created by an 1 35 employer as part of a stock bonus plan, pension plan, 2 1 disability or death benefit plan, or profit sharing plan, for 2 2 the benefit of some or all the employer's employees, to which 2 3 contributions are made by the employer or employees, or both, 2 4 for the purposes of distributing to the employees or their 2 5 beneficiaries the earnings or the principal, or both, of such 2 6 trust is not invalid as violating the rule against 2 7 perpetuities or any other law restricting or limiting the 2 8 duration of trusts; but the trust may continue for the time 2 9 that is necessary to accomplish the purposes for which it was 2 10 created. 2 11 3. Subsection 1 shall be effective for interests in real 2 12 or personal property in trust created by an inter vivos or 2 13 testamentary trust or will executed on or after July 1, 2003, 2 14 or pursuant to the exercise of a general power of appointment 2 15 on or after July 1, 2003. For the purposes of this 2 16 subsection, "general power of appointment" means a power that 2 17 is exercisable in favor of the individual possessing the 2 18 power, the person's estate, the person's creditors, or the 2 19 creditors of the person's estate. 2 20 2 21 2 22 2 23 CHRISTOPHER C. RANTS 2 24 Speaker of the House 2 25 2 26 2 27 2 28 MARY E. KRAMER 2 29 President of the Senate 2 30 2 31 I hereby certify that this bill originated in the House and 2 32 is known as House File 450, Eightieth General Assembly. 2 33 2 34 2 35 3 1 MARGARET THOMSON 3 2 Chief Clerk of the House 3 3 Approved , 2003 3 4 3 5 3 6 3 7 THOMAS J. VILSACK 3 8 Governor
Text: HF00449 Text: HF00451 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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