SSHB 34: "An Act relating to the statutory rule against perpetuities, to nonvested property interests and trusts, and to the suspension of the power of alienation of property; and providing for an effective date."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 34 01 "An Act relating to the statutory rule against perpetuities, to nonvested property 02 interests and trusts, and to the suspension of the power of alienation of property; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 34.27.051(b) is amended to read: 06 (b) If a nongeneral power of appointment is exercised to create a new 07 presently exercisable general power of appointment, all property interests subject to 08 [THE EXERCISE OF] that new presently exercisable general power of appointment 09 are invalid unless, within 1,000 years after the creation of the new presently 10 exercisable general power of appointment, the property interests that are subject to the 11 new presently exercisable general power of appointment either vest or terminate. 12 * Sec. 2. AS 34.27.051(c) is amended to read: 13 (c) If a nongeneral power of appointment is exercised to create a new or 14 successive nongeneral power of appointment or a new or successive testamentary
01 general power of appointment, all property interests subject to the exercise of that 02 new or successive nongeneral or testamentary general power of appointment are 03 invalid unless, within 1,000 years from the time of creation of the original instrument 04 or conveyance creating the original nongeneral power of appointment that is exercised 05 to create a new or successive nongeneral or testamentary general power of 06 appointment, the property interests that are subject to the new or successive 07 nongeneral or testamentary general power of appointment either vest or terminate. 08 * Sec. 3. AS 34.27.100(a) is amended to read: 09 (a) A future interest or trust is void if, as to property subject to the future 10 interest or trust, 11 (1) the future interest or trust suspends the power of alienation of the 12 property, the suspension of the power of alienation is for a period of at least 30 years 13 after the death of an individual alive at the time of the creation of the future interest or 14 trust, and the suspension of the power of alienation occurs in the document creating 15 the future interest or trust; 16 (2) the future interest or trust suspends the power of alienation of the 17 property and the suspension of the power of alienation is for a period of at least 30 18 years after the death of an individual alive at the time of the creation of the future 19 interest or trust as computed from the time of the termination of a settlor's power 20 to revoke the trust; 21 (3) the future interest or trust suspends the power of alienation of the 22 property, the future interest or trust is created by the exercise of a presently 23 exercisable general power of appointment, whether by will or otherwise, and the 24 suspension of the power of alienation is for a period of at least 30 years after the 25 death of an individual alive at the time of the creation of the future interest or 26 trust as computed from the time of creation of the presently exercisable power of 27 appointment [IS EXERCISED]; or 28 (4) the future interest or trust suspends the power of alienation of the 29 property, the future interest or trust is created by the exercise of a nongeneral or 30 testamentary general power of appointment [THAT IS NOT A GENERAL POWER 31 OF APPOINTMENT], and the suspension of the power of alienation is for a period of
01 at least 30 years after the death of an individual alive at the time of the creation of 02 the future interest or trust as computed from the time of creation of the original 03 instrument or conveyance creating the original power of appointment that was 04 exercised to create a new or successive nongeneral or testamentary general power of 05 appointment. 06 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 RETROACTIVE EFFECT. AS 34.27.051(b), 34.27.051(c), and 34.27.100(a), as 09 amended by this Act, are retroactive to April 22, 2000, and apply to a trust instrument or 10 conveyance executed on or after that date upon the conditions set out in those subsections. 11 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).