Bill > HB654

This bill amends Section 112.036 of the Texas Property Code to modify the rule against perpetuities. The key provisions are: 1. The rule against perpetuities applies to interests in trusts, except for charitable trusts. 2. For trusts that become irrevocable on or after September 1, 2021, interests in the trust must vest within 300 years of the trust's effective date. 3. For trusts that become irrevocable before September 1, 2021, interests in the trust must vest within 21 years after the life of the person who created the trust, plus a period of gestation, unless the trust instrument specifies that the 300-year rule applies. 4. The bill also allows for the reformation or construction of interests in trusts as provided by existing law. 5. Additionally, the bill limits the ability of a trust settlor to direct that a real property asset be retained or not sold for a period longer than 100 years.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=87R&Bill=HB654