Bill > HB3744

This bill amends Section 112.036 of the Texas Property Code, which deals with the rule against perpetuities. The key provisions are: (1) the rule against perpetuities applies to interests in trusts, but not to charitable trusts; (2) for trusts that become irrevocable on or after September 1, 2019, interests must vest within 300 years after the trust becomes irrevocable; (3) for trusts that become irrevocable before September 1, 2019, interests must vest within 21 years after the life in being at the time the interest was created, unless the trust instrument provides that the 300-year rule applies; and (4) any interest in a trust may be reformed or construed as provided in Section 5.043 of the Property Code. The bill takes effect on September 1, 2019.