HB28 Alabama 2011 Session

Updated Feb 27, 2026

Low Interest

Summary

Primary Sponsor: Demetrius C. Newton
Democrat
Co-Sponsor: Bill Poole
Session: Regular Session 2011
Title: Real and personal property, rule against perpetuities, duration of interests prior to vesting, Uniform Statutory Rule Against Perpetuities adopted, common law rule repealed, real and personal property to vest in 100 years, trust up to 360 years, Secs. 35-4A-421 to 35-4A-428, inclusive, added; Sec. 35-4-4 repealed
Summary: HB28 creates the Alabama Uniform Statutory Rule Against Perpetuities, setting time limits for when property interests and trusts must vest and replacing the old common-law rule.
What This Bill Does
It adds Chapter 4A to Title 35 to establish the statutory rule against perpetuities and sets vesting limits for real and personal property interests and the duration of trusts. Nonvested interests must vest or terminate within 21 years after the death of a person alive at creation, or within 100 years after creation; similar timing applies to general and nongeneral powers of appointment. For measuring validity, post-death births are ignored, and any language attempting to push vesting beyond 21 years after a survivor’s death is considered inoperative beyond that limit. The act also allows courts to reform dispositions to match the transferor’s plan within 100 years (or 360 years for certain cases) and lists several exclusions from the rule. It applies to interests created on or after January 1, 2012 and repeals Section 35-4-4.

Who It Affects
Property owners, trust creators, and beneficiaries in Alabama, whose real or personal property interests or trusts must now conform to 21-year/100-year vesting limits and may be affected by potential reform to fit the plan.
Trustees, fiduciaries, and courts, who must apply the new rules, determine when interests are created, administer exclusions, and may reform dispositions to align with the intended distribution and time limits.

Key Provisions
Establishes the Alabama Uniform Statutory Rule Against Perpetuities as Chapter 4A of Title 35 and repeals the old common-law rule (35-4-4).
Nonvested property interests must vest or terminate within 21 years after the death of a living person at creation, or within 100 years after creation.
General powers of appointment not exercisable due to a condition precedent must be satisfied or become impossible within 21 years after death of a living person, or within 100 years after creation; nongeneral and general testamentary powers have similar timing requirements.
Disregards the possibility of children born after death when measuring validity; language attempting to extend vesting beyond 21 years after a survivor’s death is inoperative if it creates a period longer than 21 years.
Courts can reform dispositions to approximate the transferor’s plan within 100 years (or 360 years for certain trusts) when needed to comply with the rule.
Provides numerous exclusions from the rule, including transfers arising from premarital/divorce arrangements, fiduciary powers, discretionary distributions to vested beneficiaries, trusts for charities or governments, certain employee benefit plans, and trusts not subject to the rule or already complying with other statutes.
Applies prospectively to nonvested interests or powers created on or after January 1, 2012; defines when a power to create a nonvested interest is considered created.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Property, Real and Personal