Legislation allowing Mississippians to place their assets in a trust for up to 360 years passed the state House and is now pending before Gov. Phil Bryant. A spokesperson for Bryant said the governor would study the legislation when it reaches his desk before deciding whether to sign it into law. Despite questions in the House on the reason it would be necessary to form a trust that would last 360 years, the legislation passed by an overwhelming 105-12 margin.
The Commonwealth of Virginia abolished the 'rules against perpetuities' years ago.
According to the Northeast Mississippi Daily Journal, the state’s House Judiciary Chair Mark Barker said many states were passing laws allowing for the establishments of trusts for 360 years or longer. He also commented that this is actually the process already since there are loopholes in the existing state rules against perpetuities.
In general, though, current state law allows a person to set up a trust that would last to a point where a person’s grandchildren were young adults; however, at that point they would, in effect, own the property or assets and could do with them as they wanted. The grandchildren would have the authority to control the property and assets.
Under the state’s bill heading to the Mississippi governor, a trust for real estate could last for 110 years. But a trust for assets, such as money and investments, would be allowed to last 360 years. The reason for making these rules is that trusts usually are more protected from paying taxes on assets and property. Talk to an experienced estate planning attorney about the length of trusts and how they are taxed in your state. He or she will have the know-how to best set up a trust so that your needs and intentions are satisfied, and everything is legal and sound.
You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning.
Reference: Northeast Mississippi Daily Journal (March 13, 2015) “Bill allowing trusts for 360 years heading to governor”