Bill Text: TX HB654 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Relating to the rule against perpetuities.

Spectrum: Bipartisan Bill

Status: (Passed) 2021-06-16 - Effective on 9/1/21 [HB654 Detail]

Download: Texas-2021-HB654-Enrolled.html

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H.B. No. 654

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.
(f) Under this section, a settlor of a trust may not direct
that a real property asset be retained or refuse that a real
property asset may be sold for a period longer than 100 years.
SECTION 2. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 654 was passed by the House on April
1, 2021, by the following vote: Yeas 144, Nays 3, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 654 on May 18, 2021, by the following vote: Yeas 135, Nays 8, 1
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 654 was passed by the Senate, with
amendments, on May 10, 2021, by the following vote: Yeas 19, Nays
9, 2 present, not voting.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor