55-12.4 - Exclusions from statutory rule against perpetuities. - Virginia Statutes

§ 55-12.4. Exclusions from statutory rule against perpetuities.

Section 55-12.1 does not apply to:

1. A nonvested property interest or a power of appointment arising out of anondonative transfer, except a nonvested property interest or a power ofappointment arising out of (i) a premarital or postmarital agreement; (ii) aseparation or divorce settlement; (iii) a spouse's election; (iv) a similararrangement arising out of a prospective, existing, or previous maritalrelationship between the parties; (v) a contract to make or not to revoke awill or trust; (vi) a contract to exercise or not to exercise a power ofappointment; (vii) a transfer in satisfaction of a duty of support; or (viii)a reciprocal transfer;

2. A fiduciary's power relating to the administration or management ofassets, including the power of a fiduciary to sell, lease, or mortgageproperty, and the power of a fiduciary to determine principal and income;

3. A power to appoint a fiduciary;

4. A discretionary power of trustee to distribute principal beforetermination of a trust to a beneficiary having an indefensibly vestedinterest in the income and principal;

5. A nonvested property interest held by a charity, government, orgovernmental agency or subdivision, if the nonvested property interest ispreceded by an interest held by another charity, government, or governmentalagency or subdivision;

6. A nonvested property interest in or a power of appointment with respect toa trust or other property arrangement forming part of a pension,profit-sharing, stock bonus, health, disability, death benefit, incomedeferral, or other current or deferred benefit plan for one or moreemployees, independent contractors, or their beneficiaries or spouses, towhich contributions are made for the purpose of distributing to or for thebenefit of the participants or their beneficiaries or spouses the property,income, or principal in the trust or other property arrangement, except anonvested property interest or a power of appointment that is created by anelection of a participant or a beneficiary or spouse; or

7. A property interest, power of appointment, or arrangement that was notsubject to the common law rule against perpetuities or is excluded by anotherstatute of this Commonwealth.

(2000, c. 714.)