§ 32-17-8-5 — Clauses taking effect upon the later of certain occurrences; portion invalid; construction

(a) This section applies to a clause in a
governing instrument that:
(1) purports to:
(A) postpone the vesting or termination of any interest or trust
until;
(B) disallow the vesting or termination of any interest or trust
beyond;
(C) require all interests or trusts to vest or terminate not later
than; or
(D) operate in any similar fashion upon;
the occurrence of an event described in subdivision (2); and
(2) takes effect upon the later of the following occurrences:
(A) The expiration of a period that exceeds twenty-one (21)
years or that might exceed twenty-one (21) years after the death
of the survivor of lives in being at the creation of the trust or
other property arrangement.
(B) The death of, or the expiration of a period not exceeding
twenty-one (21) years after the death of, the survivor of
specified lives in being at the creation of the trust or other
property arrangement.
(b) If a clause described in subsection (a) appears in an instrument
creating a trust or other property arrangement, then, in measuring a
period from the creation of a trust or other property arrangement, the
portion of the clause that pertains to the period that exceeds twenty-one
(21) years or that might exceed twenty-one (21) years after the death of
the survivor of lives in being at the creation of the trust or other
property arrangement is not valid. The court shall construe the clause
as becoming effective upon:
(1) the death of; or
(2) the expiration of the period not exceeding twenty-one (21)
years after the death of;
the survivor of the specified lives in being at the creation of the trust or
other property arrangement.
[Pre-2002 Recodification Citation: 32-1-4.5-5.]

Legislative History

As added by P.L.2-2002, SEC.2.