Bill Text: IA SSB1090 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act creating an exception to the statutory rule against perpetuities and making related changes.
Spectrum: Committee Bill
Status: (N/A - Dead) 2017-02-20 - Subcommittee Meeting: 02/28/2017 12:00PM Senate Lobbyist Lounge [SSB1090 Detail]
Download: Iowa-2017-SSB1090-Introduced.html
Senate
Study
Bill
1090
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ZAUN)
A
BILL
FOR
An
Act
creating
an
exception
to
the
statutory
rule
against
1
perpetuities
and
making
related
changes.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
557.7,
Code
2017,
is
amended
to
read
as
1
follows:
2
557.7
Contingent
remainders.
3
A
Except
as
provided
in
section
558.68A,
a
contingent
4
remainder
shall
take
effect,
notwithstanding
any
determination
5
of
the
particular
estate,
in
the
same
manner
in
which
it
6
would
have
taken
effect
if
it
had
been
an
executory
devise
7
or
a
springing
or
shifting
use,
and
shall,
as
well
as
such
8
limitations,
be
subject
to
the
rule
respecting
remoteness
9
known
as
the
rule
against
perpetuities
,
exclusive
of
any
other
10
supposed
rule
respecting
limitations
to
successive
generations
11
or
double
possibilities
.
12
Sec.
2.
NEW
SECTION
.
558.68A
Exception
to
rule
against
13
perpetuities.
14
1.
Notwithstanding
section
558.68,
a
rule
of
law
against
15
perpetuities,
a
suspension
of
the
power
of
alienation
of
16
the
title
to
property,
or
a
law
restricting
or
limiting
the
17
duration
of
trusts
shall
not
apply
with
respect
to
any
interest
18
in
real
or
personal
property
held
in
trust
if
the
instrument
19
creating
the
trust
specifically
states
that
such
rule
or
the
20
provisions
of
section
558.68
shall
not
apply
to
the
trust
and
21
if
either
the
trustee
of
the
trust
has
unlimited
power
to
sell
22
all
trust
assets
or
if
one
or
more
persons,
one
of
whom
may
be
23
the
trustee,
has
unlimited
power
to
terminate
the
entire
trust.
24
2.
A
trust
of
real
or
personal
property
created
by
25
an
employer
as
part
of
a
stock
bonus
plan,
pension
plan,
26
disability
or
death
benefit
plan,
or
profit
sharing
plan,
for
27
the
benefit
of
some
or
all
the
employer’s
employees,
to
which
28
contributions
are
made
by
the
employer
or
employees,
or
both,
29
for
the
purposes
of
distributing
to
the
employees
or
their
30
beneficiaries
the
earnings
or
the
principal,
or
both,
of
such
31
trust
is
not
invalid
as
violating
the
rule
against
perpetuities
32
or
any
other
law
restricting
or
limiting
the
duration
of
33
trusts;
but
the
trust
may
continue
for
the
time
that
is
34
necessary
to
accomplish
the
purposes
for
which
it
was
created.
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3.
Subsection
1
shall
be
effective
for
interests
in
real
1
or
personal
property
in
trust
created
by
an
inter
vivos
or
2
testamentary
trust
or
will
executed
on
or
after
July
1,
2017,
3
or
pursuant
to
the
exercise
of
a
general
power
of
appointment
4
created
on
or
after
July
1,
2017.
For
the
purposes
of
this
5
subsection,
“general
power
of
appointment”
means
a
power
that
is
6
exercisable
in
favor
of
the
individual
possessing
the
power,
7
the
person’s
estate,
the
person’s
creditors,
or
the
creditors
8
of
the
person’s
estate.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
creates
an
exception
to
the
statutory
rule
against
13
perpetuities
codified
in
Code
section
558.68,
which
is
a
legal
14
rule
related
to
invalidating
interests
in
property
that
are
15
intended
to
belong
to
a
person
at
some
point
in
the
future,
but
16
for
which
the
actual
determination
of
ownership
cannot
or
will
17
not
be
accomplished
within
a
specified
period
of
time.
The
18
purpose
of
the
rule
is
to
keep
property
from
being
frozen
in
19
trust
beyond
a
certain
period
of
years.
20
The
bill
allows
a
creator
of
a
trust
to
suspend,
explicitly
21
in
the
trust
document,
the
rule
from
applying
to
a
particular
22
trust,
but
only
if
the
trustee
has
the
power
to
sell
all
trust
23
assets
or
if
one
or
more
persons,
including
the
trustee,
has
24
the
power
to
terminate
the
trust.
25
The
bill
further
allows
suspension
of
the
rule
in
situations
26
where
an
employer
creates
a
stock
bonus
plan,
pension
plan,
27
disability
or
death
benefit
plan,
or
profit
sharing
plan,
in
28
trust,
for
the
benefit
of
the
employer’s
employees,
for
the
29
purpose
of
distributing
to
the
employees
or
their
beneficiaries
30
earnings
or
principal
or
both.
31
The
bill
applies
to
all
interests
in
real
or
personal
32
property
created
by
testamentary
or
inter
vivos
trust
or
will
33
be
executed
on
or
after
July
1,
2017,
or
to
the
exercise
of
a
34
general
power
of
appointment
created
on
or
after
July
1,
2017.
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