Rule against perpetuities.

WORKING DRAFT
2011
STATE OF
WYOMING
11LSO-0463

HOUSE BILL
NO.
HB0158

Rule against perpetuities.

Sponsored by:
Representative(s) Brown, Gingery and Krone

A BILL

for

AN ACT relating to property; providing that only interests in real property must vest as specified; providing that trusts holding property other than interests in real property shall continue as specified;
and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 34
‑
1
‑
139 is amended to read:

34
‑
1
‑
139.

Perpetuities; time limits for vesting; restrictions on selected lives; legislative intent.

(a)

No interest in real
or personal

property shall be good unless it must vest not later than twenty-one (21) years after some life in being at the creation of the interest and any period of gestation involved in the situation to which the limitation applies. The lives selected to govern the time of vesting must not be so numerous nor so situated that evidence of their deaths is likely to be unreasonably difficult to obtain. It is intended by
the enactment of

this
statute
subsection

to make effective in this state the American common-law rule against perpetuities.

(b)

Subsection (a) of this section shall not apply to
A

trust created after July 1, 2003
,

owning or h
olding property other than interests in real property, shall
continue
for one thousand (1,000) years after the trust's creation, unless some earlier term is expressly set forth in the trust instrument,
if:

(i)

The instrument creating the trust states that the rule against perpetuities as provided in subsection (a) of this section shall not apply to
T
he trust
terms require that any power of appointment over the trust property terminate and all interests in the trust property vest or terminate no later than one thousand (1,000) years after the trust's creation, or such earlier date as set forth in the trust instrument
;

(ii)

The instrument creating the trust states that the trust shall terminate no later than one thousand (1,000) years after the trust's creation; and

(ii)
(iii)

The trust is governed by the laws of this state
;
and

(iii)

T
he
trustee maintains a place of business, administers the trust in this state or is a resident of this state.

(c)

The election provided in subsection (b) of this section shall not be available to real property owned and held in a trust making an election under subsection (b) of this section.

If a trust owns or holds both interests in real property and interests in property other than real property,
s
ubsection (a) of this section shall apply to

such

any
real property
interests

held in
a

the

trust
making an election under

and

subsection (b) of this section
. Subsection (b) of this section

shall apply to the remaining
assets

property

of
such

the

trust.

(d)

Real property

interests
for the purpose of
subsection (b)

subsections (a) and (c)

of this section shall not include
a

mineral
interest

interests

or
an interes
t
interests

in a corporation, limited liability company, partnership, business trust or other entity.

Section 2
.

This act is effective July 1, 2011.

(END)

1
HB0158