SB105 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Ben H. Brooks
Republican
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duration of interests prior to vesting, Uniform Statutory Rule Against Perpetuities adopted, common law rule repealed, real and personal property to vest in 100 years, trust up to 360 years, Secs. 35-4A-421 to 35-4A-428, inclusive, added; Sec. 35-4-4 repealed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: SB105 replaces Alabama's old rule on how long property interests can last before vesting with a 100-year vesting rule (360 years for trusts) and repeals the common-law rule against perpetuities.
What This Bill Does
It adopts the Uniform Statutory Rule Against Perpetuities for Alabama, changing how long property interests can stay unsettled before they must vest or terminate. For real and personal property (not including trusts), vesting must occur within 100 years after creation; for trusts, the maximum duration is 360 years. The bill also sets out how to determine when an interest is created and clarifies rules for various kinds of powers of appointment. It includes many exclusions from the rule (such as certain premarital/divorce arrangements, fiduciary powers, pension plans, and some charitable arrangements) and applies to interests created on or after January 1, 2012.

Who It Affects
Property owners, and estate and trust planners, who must draft instruments that fit within the 100-year or 360-year limits to avoid invalidity.
Trustees and other fiduciaries, who must administer property and powers under the new rules and consider whether powers of appointment are valid within the time limits.
Beneficiaries and potential class members, whose future interests may be delayed or constrained by the new vesting periods.
Charities, government entities, pension plans, and certain related arrangements, which are partly exempt from the rule and may be treated differently under the exclusions.
Attorneys and financial professionals, who will need to understand and apply the new time limits when drafting wills, trusts, and other property arrangements.

Key Provisions
Nonvested property interests must vest or terminate within 21 years after the death of a measuring life or within 100 years after creation; trusts may last up to 360 years.
The state repeals the common-law rule against perpetuities and adopts the Alabama Uniform Statutory Rule Against Perpetuities (Chapter 4A, Title 35).
The Act details how to determine when interests and powers are created, including special rules for certain types of powers of appointment.
Court reform provisions allow dispositions to be revised to closely fit the transferor's plan within the 100-year or 360-year windows.
Numerous exclusions from the rule are listed (e.g., certain premarital agreements, fiduciary powers, pension/employee benefit plans, charitable trusts, and other specified arrangements).
The act applies to interests created on or after January 1, 2012 and repeals Section 35-4-4; it supersedes the previous common-law rule governing perpetuities.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Property, Real and Personal