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Relating to the rule against perpetuities.
No significant fiscal implication to the State is anticipated.
HB 654 would increase the rule against perpetuities for trusts. Beginning on the effective date of the bill, any interest in a non-charitable trust would have to vest within 300 years of the date the trust becomes effective, rather than the existing 21 years.
Texas Action supports HB 654 because it expands the property rights of Texans when creating trusts. The existing rule against perpetuities prevents property owners of all wealth levels from creating interests in their property more than one or two generations down the line. If enacted, HB 654 would give owners more liberty to decide what should happen to their property after they pass away and reduce government interference in their estate planning decisions.