§ 15-11-1105 — Exclusions from statutory rule against perpetuities

(1) The
statutory rule against perpetuities, as set forth in sections 15-11-1102 and 15-11-1102.5, does not apply to invalidate:

(a) A nonvested property interest or a power of appointment arising out of a
nondonative transfer, except a nonvested property interest or a power of
appointment arising out of:

(I) A premarital or postmarital agreement;

(II) A separation or divorce settlement;

(III) A spouse's election;

(IV) A similar arrangement arising out of a prospective, existing, or previous
marital relationship between the parties;

(V) A contract to make or not to revoke a will or trust;

(VI) A contract to exercise or not to exercise a power of appointment; or

(VII) A transfer in satisfaction of a duty of support.

(VIII) (Deleted by amendment, L. 2006, p. 381, � 12, effective July 1, 2006.)

(b) A fiduciary's power relating to the administration or management of
assets, including the power of a fiduciary to sell, lease, or mortgage property, and
the power of a fiduciary to determine principal and income;

(c) A power to appoint a fiduciary;

(d) A discretionary power of a trustee to distribute principal before
termination of a trust to a beneficiary having an indefeasibly vested interest in the
income and principal;

(e) A nonvested property interest held by a charity, government, or
governmental agency or subdivision, if the nonvested property interest is preceded
by an interest held by another charity, government, or governmental agency or
subdivision;

(f) A nonvested property interest in or a power of appointment with respect
to a trust or other property arrangement forming part of a pension, profit-sharing,
stock bonus, health, disability, death benefit, income deferral, or other current or
deferred benefit plan for one or more employees, independent contractors, or their
beneficiaries or spouses, to which contributions are made for the purpose of
distributing to or for the benefit of the participants or their beneficiaries or spouses
the property, income, or principal in the trust or other property arrangement, except
a nonvested property interest or a power of appointment that is created by an
election of a participant or a beneficiary or spouse; or

(g) A property interest, power of appointment, or arrangement that was not
subject to the common-law rule against perpetuities or is excluded by another
statute of this state.

Legislative History

Source: L. 91: Entire part added, p. 1447, � 9, effective May 31. L. 2006: IP(1) and (1)(a) amended, p. 381, � 12, effective July 1.