2005 Arizona Revised Statutes - Revised Statutes §14-2901  Nonvested property interest; general power of appointment; validity; exception

A. A nonvested property interest is invalid unless at least one of the following is true:

1. At the time the interest is created it is certain to vest or to terminate not later than twenty-one years after the death of a person who is then alive.

2. The interest either vests or terminates within ninety years after its creation.

3. The interest is under a trust whose trustee has the expressed or implied power to sell the trust assets and at one or more times after the creation of the interest one or more persons who are living when the trust is created have an unlimited power to terminate the interest.

B. A general power of appointment that is not presently exercisable because of a condition precedent is invalid unless either of the following is true:

1. At the time the power is created the condition precedent is certain to be satisfied or becomes impossible to satisfy no later than twenty-one years after the death of a person who is then alive.

2. The condition precedent either is satisfied or becomes impossible to satisfy within ninety years after its creation.

C. A nongeneral power of appointment or a general testamentary power of appointment is invalid unless:

1. At the time the power is created it is certain to be irrevocably exercised or otherwise to terminate not later than twenty-one years after the death of a person who is then alive.

2. The power is irrevocably exercised or otherwise terminates within ninety years after its creation.

D. In determining whether a nonvested property interest or a power of appointment is valid under subsection A, paragraph 1, subsection B, paragraph 1 or subsection C, paragraph 1, the possibility that a child will be born to a person after that person's death is disregarded.

E. If the governing instrument's language seeks to do either of the following on the later of either the expiration of a period of time that does not exceed twenty-one years after the death of the survivor of a specific person who was alive when the trust or other property arrangement was created or the expiration of a period of time that exceeds or might exceed twenty-one years after the death of the survivor of a specific person who was alive when that trust or other property arrangement was created, that language is inoperative to the extent that it produces a period of time that exceeds twenty-one years after the death of the survivor:

1. Disallow the vesting or termination of an interest or trust beyond that time.

2. Postpone the vesting or termination of an interest or trust until that time.