HB 219 - RULE AGAINST PERPETUITIES                                                                                              
                                                                                                                                
CHAIRMAN KOTT announced that the next item of business is HOUSE                                                                 
BILL NO. 219, "An Act relating to the rule against perpetuities,                                                                
nonvested property interests, and powers of appointment; and                                                                    
providing for an effective date."                                                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG requested a refresher from Mr. Winchell on                                                              
the rule of perpetuities.                                                                                                       
                                                                                                                                
Number 2088                                                                                                                     
                                                                                                                                
CORY WINCHELL, Administrative Assistant to Representative Pete                                                                  
Kott; and Committee Aide, House Judiciary Standing Committee,                                                                   
Alaska State Legislature, said one must have an interest that vests                                                             
within the lifetime.  In this case, the trust must vest within the                                                              
lifetime of the beneficiary.  He noted that there are caveats and                                                               
exceptions to the rules.  Mr. Winchell said this allows charitable                                                              
lead trusts to occur.  "They aren't an entity or a person," he                                                                  
explained, "so it vests without a person's life, and then we're                                                                 
allowing the abolition of the rule against perpetuities - which,                                                                
too, a growing minority of jurisdictions are doing - in order to                                                                
allow our jurisdiction to be a basically good forum, forum shopping                                                             
for estate planning purposes, where the abolition of the rule                                                                   
against perpetuities -- that's where the bill stands."                                                                          
                                                                                                                                
REPRESENTATIVE ROKEBERG expressed his understanding that the rule                                                               
against perpetuities had already been abolished in Alaska.  [Other                                                              
members concurred.]                                                                                                             
                                                                                                                                
Number 2137                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG, amid simultaneous discussion, made a                                                                   
motion to move HB 219 from committee with individual                                                                            
recommendations and any fiscal notes.                                                                                           
                                                                                                                                
CHAIRMAN KOTT, noting that there was no objection, announced that                                                               
HB 219 was so moved from the House Judiciary Standing Committee.                                                                
                                                                                                                                
[Some loose discussion followed about members' uncertainty about                                                                
abolishing the rule of perpetuities, the lack of testimony, and                                                                 
that some members hadn't even heard the motion to move the bill.]                                                               
                                                                                                                                
MR. WINCHELL clarified that the rule against perpetuities came into                                                             
being during the Age of Reason, when thinkers didn't like the idea                                                              
of monarchies or aristocracies which transferred property, through                                                              
primogeniture, to the eldest son all the way through.  That became                                                              
a custom of setting up property trusts or just bequeathing property                                                             
in that direction.  Mr. Winchell added, "So, when we came to                                                                    
America, Thomas Jefferson and that crowd right there liked the idea                                                             
of dispersing the properties, and they just went ... on and on and                                                              
on and on.  So, the rule against perpetuities came in that way.                                                                 
It's an ancient, archaic term.  I don't know what else I can say                                                                
about it. ... We want to be able to bequeath properties in the                                                                  
fashion that we want to."  [HB 219 was moved from the House                                                                     
Judiciary Standing Committee.]