CHAPTER 143
HB 431 - FINAL VERSION
25mar03... 0880h
2003 SESSION
05/10
HOUSE BILL 431
AN ACT eliminating application of the rule against perpetuities to instruments that contain safeguards relative to the continued alienability of property.
SPONSORS: Rep. Moran, Hills 57; Rep. Hunt, Ches 28; Sen. Sapareto, Dist 19
This bill provides that the common law rule against perpetuities shall not apply to any disposition of property or interest therein if the instrument that creates the property interest contains an express exemption from the rule and if the instrument contains provisions relative to the alienability of the property.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25mar03... 0880h
03-0558
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT eliminating application of the rule against perpetuities to instruments that contain safeguards relative to the continued alienability of property.
Be it Enacted by the Senate and House of Representatives in General Court convened:
143:1 New Section; Exemption from Rule Against Perpetuities. Amend RSA 547 by inserting after section 3-j the following new section:
547:3-k Exemption from the Rule Against Perpetuities. The probate court shall not apply the common law rule against perpetuities to any disposition of property or interest therein, created after the effective date of this section, if:
I. The instrument making the disposition or creating the interest contains a provision which expressly exempts the instrument from the application of the rule against perpetuities; and
II. The trustee, or other person to whom the power is properly granted or delegated, has the power under the governing instrument, applicable statute, or common law, to sell, mortgage, or lease property for any period of time beyond the period that is required for an interest created under the governing instrument to vest in order to be valid under the rule against perpetuities.
143:2 New Section; Trustees of Estates; Exemption from Rule Against Perpetuities. Amend RSA 564 by inserting after section 23 the following new section:
564:24 Exemption from Rule Against Perpetuities.
I. The common law rule against perpetuities shall not apply to any disposition of property or interest therein, created after the effective date of this section, if:
(a) The instrument making the disposition or creating the interest contains a provision which expressly exempts the instrument from the application of the rule against perpetuities; and
(b) The trustee, or other person to whom the power is properly granted or delegated, has the power under the governing instrument, applicable statute, or common law, to sell, mortgage, or lease property for any period of time beyond the period that is required for an interest created under the governing instrument to vest in order to be valid under the rule against perpetuities.
II. This section shall also apply to a trust or a trustee of a trust as defined in RSA 564-A:1.
143:3 Effective Date. This act shall take effect January 1, 2004.
(Approved: June 17, 2003)
(Effective Date: January 1, 2004)