Tex. Property Code § 112.036
This is the official text of Tex. Property Code § 112.036, part of Texas’s Property Code — governs real property, landlord-tenant law, and property transactions.
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§ 112.036. RULE AGAINST PERPETUITIES.
Official statutory text
(a) The rule against perpetuities applies to an interest in a trust other than a charitable trust.
(b) For purposes of this section, the effective date is the date the governing instrument creating an interest in the trust becomes irrevocable with respect to that interest. If an interest in one trust is distributed to another trust with a different effective date, the effective date of that interest in the second trust becomes the earlier of the effective dates of the two trusts.
(c) An interest in a trust must vest, if at all:
(1) if the effective date is on or after September 1, 2021, not later than the later of:
(A) 300 years after the effective date; or
(B) 21 years after some life in being at the time of the effective date, plus a period of gestation; or
(2) if the effective date is before September 1, 2021, except as provided by Subsection (d), not later than 21 years after some life in being at the time of the effective date, plus a period of gestation.
(d) An interest in a trust that has an effective date before September 1, 2021, may vest as described by Subsection (c)(1) if the trust instrument provides that an interest in the trust vests under the provisions of this section applicable to trusts on the date that the interest vests.
(e) Any interest in a trust may be reformed or construed to the extent and as provided by Section 5.043.
(f) Under this section, a settlor of a trust may not direct that a real property asset be retained or refuse that a real property asset may be sold for a period longer than 100 years.
(b) For purposes of this section, the effective date is the date the governing instrument creating an interest in the trust becomes irrevocable with respect to that interest. If an interest in one trust is distributed to another trust with a different effective date, the effective date of that interest in the second trust becomes the earlier of the effective dates of the two trusts.
(c) An interest in a trust must vest, if at all:
(1) if the effective date is on or after September 1, 2021, not later than the later of:
(A) 300 years after the effective date; or
(B) 21 years after some life in being at the time of the effective date, plus a period of gestation; or
(2) if the effective date is before September 1, 2021, except as provided by Subsection (d), not later than 21 years after some life in being at the time of the effective date, plus a period of gestation.
(d) An interest in a trust that has an effective date before September 1, 2021, may vest as described by Subsection (c)(1) if the trust instrument provides that an interest in the trust vests under the provisions of this section applicable to trusts on the date that the interest vests.
(e) Any interest in a trust may be reformed or construed to the extent and as provided by Section 5.043.
(f) Under this section, a settlor of a trust may not direct that a real property asset be retained or refuse that a real property asset may be sold for a period longer than 100 years.
Status: in_force · Read it on the official government site
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