Title 105 · ORS Chapter 105

to 105.945 do not apply to data that is stored or transmitted pursuant

Citation: ORS 105.925

Section: 105.925

105.925 to 105.945 do not apply to data that is stored or transmitted pursuant to a subscription service agreement for the use of a recording device to record a history of where a motor vehicle travels or for the transmission of data to a central communications system. [2007 c.644 �6]

RULE AGAINST PERPETUITIES

�� 105.950 Statutory rule against perpetuities. (1) A nonvested property interest is invalid unless:

�� (a) When the interest is created, it is certain to vest or terminate no later than 21 years after the death of an individual then alive; or

�� (b) The interest either vests or terminates within 90 years after its creation.

�� (2) A general power of appointment, not presently exercisable because of a condition precedent, is invalid unless:

�� (a) When the power is created, the condition precedent is certain to be satisfied or become impossible to satisfy no later than 21 years after the death of an individual then alive; or

�� (b) The condition precedent either is satisfied or becomes impossible to satisfy within 90 years after its creation.

�� (3) A nongeneral power of appointment or a general testamentary power of appointment is invalid unless:

�� (a) When the power is created, it is certain to be irrevocably exercised or otherwise to terminate no later than 21 years after the death of an individual then alive; or

�� (b) The power is irrevocably exercised or otherwise terminates within 90 years after its creation.

�� (4) In determining whether a nonvested property interest or a power of appointment is valid under subsection (1)(a), (2)(a) or (3)(a) of this section, the possibility that a child will be born to an individual after the individual�s death is disregarded.

�� (5) The language in a governing instrument is inoperative to the extent it produces a period of time that exceeds 21 years after the death of the survivor of the specified lives if, in measuring a period from the creation of a trust or other property arrangement, that language seeks:

�� (a) To disallow the vesting or termination of any interest or trust beyond the later of:

�� (A) The expiration of a period of time not exceeding 21 years after the death of the survivor of the specified lives in being at the creation of the trust or other property arrangement; or

�� (B) The expiration of a period of time that exceeds or might exceed 21 years after the death of the survivor of lives in being at the creation of the trust or other property arrangement.

�� (b) To postpone the vesting or termination of any interest or trust until:

�� (A) The expiration of a period of time not exceeding 21 years after the death of the survivor of the specified lives in being at the creation of the trust or other property arrangement; or

�� (B) The expiration of a period of time that exceeds or might exceed 21 years after the death of the survivor of lives in being at the creation of the trust or other property arrangement.

�� (c) To operate in effect in any similar fashion upon:

�� (A) The expiration of a period of time not exceeding 21 years after the death of the survivor of the specified lives in being at the creation of the trust or other property arrangement; or

�� (B) The expiration of a period of time that exceeds or might exceed 21 years after the death of the survivor of lives in being at the creation of the trust or other property arrangement. [1989 c.208 �1; 1993 c.273 �1]

�� 105.955 When nonvested property interest or power of appointment created. (1) Except as provided in subsections (2) and (3) of this section and in ORS 105.970 (1), the time of creation of a nonvested property interest or a power of appointment is determined under general principles of property law.

�� (2) For purposes of ORS 105.950 to 105.975, if there is a person who alone can exercise a power created by a governing instrument to become the unqualified beneficial owner of either a nonvested property interest or a property interest subject to a power of appointment described in ORS 105.950 (2) or (3), the nonvested property interest or power of appointment is created when the power to become the unqualified beneficial owner terminates.

�� (3) For purposes of ORS 105.950 to 105.975, a nonvested property interest or a power of appointment arising from a transfer of property to a previously funded trust or other existing property arrangement is created when the nonvested property interest or power of appointment in the original contribution was created. [1989 c.208 �2]

�� 105.960 Reformation. Upon the petition of an interested person, a court shall reform a disposition in the manner that most closely approximates the transferor�s manifested plan of distribution and is within the 90 years allowed by ORS 105.950 (1)(b), (2)(b) and (3)(b) if:

�� (1) A nonvested property interest or a power of appointment becomes invalid under ORS 105.950, statutory rule against perpetuities;

�� (2) A class gift is not but might become invalid under ORS 105.950, statutory rule against perpetuities, and the time has arrived when the share of any class member is to take effect in possession or enjoyment; or

�� (3) A nonvested property interest that is not validated by ORS 105.950 (1)(a) can vest but not within 90 years after its creation. [1989 c.208 �3]

�� 105.965 Exclusions from statutory rule against perpetuities. ORS 105.950, statutory rule against perpetuities, does not apply to:

�� (1) A nonvested property interest or a power of appointment arising out of a nondonative transfer, except a nonvested property interest or a power of appointment arising out of:

�� (a) A premarital or postmarital agreement;

�� (b) A separation or divorce settlement;

�� (c) A spouse�s election;

�� (d) A similar arrangement arising out of a prospective existing or previous marital relationship between the parties;

�� (e) A contract to make or not to revoke a will or trust;

�� (f) A contract to exercise or not to exercise a power of appointment;

�� (g) A transfer in satisfaction of a duty of support; or

�� (h) A reciprocal transfer;

�� (2) A fiduciary�s power relating to the administration or management of assets, including the power of a fiduciary to sell, lease or mortgage property, and the power of a fiduciary to determine principal and income;

�� (3) A power to appoint a fiduciary;

�� (4) A discretionary power of a trustee to distribute principal before termination of a trust to a beneficiary having an indefeasibly vested interest in the income and principal;

�� (5) A nonvested property interest held by a charity, government or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government or governmental agency or subdivision;

�� (6) A nonvested property interest in or a power of appointment with respect to a trust or other property arrangement forming part of a pension, profit sharing, stock bonus, health, disability, death benefit, income deferral or other current or deferred benefit plan for one or more employees, independent contractors or their beneficiaries or spouses, to which contributions are made for the purpose of distributing to or for the benefit of the participants or their beneficiaries or spouses the property, income or principal in the trust or other property arrangement, except a nonvested property interest or a power of appointment that is created by an election of a participant or a beneficiary or spouse;

�� (7) A property interest, power of appointment or arrangement that was not subject to the common-law rule against perpetuities or is excluded by another statute of this state; or

�� (8) A stewardship trust created pursuant to ORS 130.193 if the terms of the trust clearly elect that the statutory rule against perpetuities not apply to the trust and include a reference to this subsection. [1989 c.208 �4; 2019 c.162 �6]

�� 105.970 Prospective application. (1) Except as extended by subsection (2) of this section, ORS 105.950 to