§ 41-15. Statutory rule against perpetuities. - North Carolina Statutes

Article 2.

Uniform Statutory RuleAgainst Perpetuities.

§ 41‑15.  Statutory ruleagainst perpetuities.

(a)        Except as otherwiseprovided in G.S. 41‑23, a nonvested property interest is invalid unless:

(1)        When the interest iscreated, it is certain to vest or terminate no later than 21 years after thedeath of an individual then alive; or

(2)        The interest eithervests or terminates within 90 years after its creation.

(b)        A general power ofappointment not presently exercisable because of a condition precedent isinvalid unless:

(1)        When the power iscreated, the condition precedent is certain to be satisfied or becomeimpossible to satisfy no later than 21 years after the death of an individualthen alive; or

(2)        The conditionprecedent either is satisfied or becomes impossible to satisfy within 90 yearsafter its creation.

(c)        A nongeneral powerof appointment or a general testamentary power of appointment is invalidunless:

(1)        When the power iscreated, it is certain to be irrevocably exercised or otherwise to terminate nolater than 21 years after the death of an individual then alive; or

(2)        The power isirrevocably exercised or otherwise terminates within 90 years after itscreation.

(d)        In determiningwhether a nonvested property interest or a power of appointment is valid undersubdivision (a)(1), (b)(1), or (c)(1) of this section, the possibility that achild will be born to an individual after the individual's death isdisregarded.

(e)        If, in measuring aperiod from the creation of a property arrangement, language in a governinginstrument:

(1)        Seeks to disallowthe vesting or termination of any interest beyond,

(2)        Seeks to postponethe vesting or termination of any interest until, or

(3)        Seeks to operate ineffect in any similar fashion upon,

the later of (i) the expirationof a period of time not exceeding 21 years after the death of the survivor ofspecified lives in being at the creation of the property arrangement or (ii)the expiration of a period of time that exceeds or might exceed 21 years afterthe death of the survivor of lives in being at the creation of the propertyarrangement, that language is inoperative to the extent it produces a period oftime that exceeds 21 years after the death of the survivor of the specifiedlives. (1995, c.190, s. 1; 2007‑390, s. 2.)