Assembly Bill No. 75–Assemblyman Goldwater

Prefiled January 29, 1999

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Referred to Committee on Judiciary

 

SUMMARY—Increases period of perpetuities in Uniform Statutory Rule Against Perpetuities from 90 years to 500 years. (BDR 10-911)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to estates in property; increasing the period of perpetuities in the Uniform Statutory Rule Against Perpetuities from 90 years to 500 years; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 111.1031 is hereby amended to read as follows:

1-2 111.1031 1. A nonvested property interest is invalid unless:

1-3 (a) When the interest is created, it is certain to vest or terminate no later

1-4 than 21 years after the death of a natural person then alive; or

1-5 (b) The interest either vests or terminates within [90] 500 years after its

1-6 creation.

1-7 2. A general power of appointment not presently exercisable because

1-8 of a condition precedent is invalid unless:

1-9 (a) When the power is created, the condition precedent is certain to be

1-10 satisfied or become impossible to satisfy no later than 21 years after the

1-11 death of a natural person then alive; or

1-12 (b) The condition precedent either is satisfied or becomes impossible to

1-13 satisfy within [90] 500 years after its creation.

1-14 3. A nongeneral power of appointment or a general testamentary

1-15 power of appointment is invalid unless:

1-16 (a) When the power is created, it is certain to be irrevocably exercised

1-17 or otherwise to terminate no later than 21 years after the death of a natural

1-18 person then alive; or

2-1 (b) The power is irrevocably exercised or otherwise terminates within

2-2 [90] 500 years after its creation.

2-3 4. In determining whether a nonvested property interest or a power of

2-4 appointment is valid under paragraph (a) of subsection 1, paragraph (a) of

2-5 subsection 2 or paragraph (a) of subsection 3, the possibility that a child

2-6 will be born to a person after his or her death is disregarded.

2-7 5. If, in measuring a period from the creation of a trust or other

2-8 property arrangement, language in a governing instrument seeks to

2-9 disallow the vesting or termination of any interest or trust beyond, seeks to

2-10 postpone the vesting or termination of any interest or trust until, or seeks to

2-11 operate in effect in any similar fashion upon, the later of:

2-12 (a) The expiration of a period of time not exceeding 21 years after the

2-13 death of the survivor of specified lives in being at the creation of the trust

2-14 or other property arrangement; or

2-15 (b) The expiration of a period of time that exceeds or might exceed 21

2-16 years after the death of the survivor of lives in being at the creation of the

2-17 trust or other property arrangement,

2-18 that language is inoperative to the extent it produces a period of time that

2-19 exceeds 21 years after the death of the survivor of the specified lives.

2-20 Sec. 2. NRS 111.1035 is hereby amended to read as follows:

2-21 111.1035 Upon the petition of an interested person, a court shall

2-22 reform a disposition in the manner that most closely approximates the

2-23 transferor’s manifested plan of distribution and is within the [90] 500 years

2-24 allowed by paragraph (b) of subsection 1, paragraph (b) of subsection 2 or

2-25 paragraph (b) of subsection 3 of NRS 111.1031 if:

2-26 1. A nonvested property interest or a power of appointment becomes

2-27 invalid under NRS 111.1031;

2-28 2. A class gift is not but might become invalid under NRS 111.1031

2-29 and the time has arrived when the share of any class member is to take

2-30 effect in possession or enjoyment; or

2-31 3. A nonvested property interest that is not validated by paragraph (a)

2-32 of subsection 1 of NRS 111.1031 can vest but not within [90] 500 years

2-33 after its creation.

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