_______________________________________________
SENATE
BILL 5054
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Passed
Legislature - 2001 Regular Session
State
of Washington 57th Legislature 2001 Regular Session
By
Read
first time 01/10/2001. Referred to Committee on Judiciary.
Modifying the rule against perpetuities.
AN
ACT Relating to the rule against perpetuities; amending RCW 11.98.130,
11.98.140, and 11.98.150; and creating a new section.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
11.98.130 and 1985 c 30 s 55 are each amended to read as follows:
((If
any)) No provision of an instrument creating a trust, including the
provisions of any further trust created, ((or any)) and no other
disposition of property made pursuant to exercise of a power of appointment
granted in or created through authority under such instrument ((violates))
is invalid under the rule against perpetuities, ((neither such
provision nor any other provisions of the trust, or such further trust or other
disposition, is thereby rendered invalid during any of the following periods:
(1)
The twenty-one)) or any similar statute or common law,
during the one hundred fifty years following the effective date of the
instrument.
(((2)
The period measured by any life or lives in being or conceived at the effective
date of the instrument if by the terms of the instrument the trust is to
continue for such life or lives.
(3)
The period measured by any portion of any life or lives in being or conceived
at the effective date of the instrument if by the terms of the instrument the
trust is to continue for such portion of such life or lives; and
(4)
The twenty-one years following the expiration of the periods specified in (2)
and (3) above.))
Thereafter,
unless the trust assets have previously become distributable or vested, the
provision or other disposition of property is deemed to have been rendered
invalid under the rule against perpetuities.
Sec.
2. RCW
11.98.140 and 1985 c 30 s 56 are each amended to read as follows:
If,
during ((any period in which)) the one hundred fifty years following
the effective date of an instrument creating a trust, ((as described in
RCW 11.98.130, or any provision thereof, is not to be rendered invalid by the
rule against perpetuities,)) any of the trust assets should by the terms of
the instrument or pursuant to any further trust or other disposition resulting
from exercise of the power of appointment granted in or created through
authority under such instrument, become distributable or any beneficial
interest in any of the trust assets should by the terms of the instrument, or
such further trust or other disposition become vested, such assets shall be
distributed and such beneficial interest shall validly vest in accordance with
the instrument, or such further trust or other disposition.
Sec.
3. RCW
11.98.150 and 1985 c 30 s 57 are each amended to read as follows:
If,
at the ((expiration of any period in which)) end of the one hundred
fifty years following the effective date of an instrument creating a trust,
((as described in RCW 11.98.009, or any provision thereof, is not to be
rendered invalid by the rule against perpetuities,)) any of the trust
assets have not by the terms of the trust instrument become distributable or
vested, then the assets shall be distributed as the superior court having
jurisdiction directs, giving effect to the general intent of the creator of the
trust or person exercising a power of appointment in the case of any further
trust or other disposition of property made pursuant to the exercise of a power
of appointment.
NEW
SECTION. Sec. 4. This
act applies to any irrevocable trust with an effective date on or after January
1, 2002. Unless the trust instrument otherwise provides, this act does not
apply to: (1) Any irrevocable trust with an effective date prior to January 1,
2002; or (2) a revocable inter vivos trust or testamentary trust with an
effective date on or after January 1, 2002, if at all times after the date of
enactment the creator of the revocable inter vivos trust or testamentary trust
was not competent to revoke, amend, or modify the instrument.
Passed the Senate March 6, 2001.
Passed the House April 5, 2001.
Approved by the Governor
April 18, 2001.
Filed
in Office of Secretary of State April 18, 2001.
