Applicability of Article; Court Reform of Nonvested Dispositions Created Before Article Became Effective

  1. Law
  2. Georgia Code
  3. Property
  4. Estates
  5. Uniform Statutory Rule Against Perpetuities
  6. Applicability of Article; Court Reform of Nonvested Dispositions Created Before Article Became Effective

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  1. Except as extended by subsection (b) of this Code section, this article applies to a nonvested property interest or a power of appointment that is created on or after July 1, 2018. For purposes of this Code section only, a nonvested property interest or a power of appointment created by the exercise of a power of appointment is created when the power is irrevocably exercised or when a revocable exercise becomes irrevocable.
  2. With respect to a nonvested property interest or a power of appointment that was created before July 1, 2018, and that violates this state's rule against perpetuities as that rule existed before July 1, 2018, a court upon the petition of an interested party may exercise its equitable power to reform the disposition in the manner that most closely approximates the transferor's manifested plan of distribution and is within the limits of the rule against perpetuities applicable when the nonvested property interest or power of appointment was created.

(Code 1981, §44-6-205, enacted by Ga. L. 1990, p. 1837, § 2; Ga. L. 2018, p. 262, § 3/HB 121.)

The 2018 amendment, effective July 1, 2018, substituted "July 1, 2018" for "May 1, 1990" in the first sentence of subsection (a) and twice in subsection (b).

Law reviews.

- For article on the 2018 amendment of this Code section, see 35 Ga. St. U. L. Rev. 219 (2018).

JUDICIAL DECISIONS

In general.

- Trial court properly utilized the court's statutory authority under O.C.G.A. § 44-6-205(b) to reform a trust instrument that violated the rule against perpetuities. Scott v. South Trust Asset Mgmt. Co., 274 Ga. 523, 555 S.E.2d 732 (2001).

Cited in Stephens v. Trust for Pub. Land, 475 F. Supp. 2d 1299 (N.D. Ga. 2007); Cartersville Ranch, LLC v. Dellinger, 295 Ga. 195, 758 S.E.2d 781 (2014).


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