(1) Except as extended by subsection (2) of this section, this part 11 applies to a nonvested property interest or a power of appointment that is created on or after May 31, 1991. For purposes of this section and section 15-11-1107, a nonvested property interest or a power of appointment created by the exercise of a power of appointment is created when the power is irrevocably exercised or when a revocable exercise becomes irrevocable.
(2) If a nonvested property interest or a power of appointment was created before May 31, 1991, and is determined in a judicial proceeding, commenced on or after May 31, 1991, to violate this state's rule against perpetuities as that rule existed before May 31, 1991, a court upon the petition of an interested person shall reform the disposition by inserting a saving clause that preserves most closely the transferor's manifested plan of distribution and that brings that plan within the limits of the rule against perpetuities applicable when the nonvested property interest or power of appointment was created.
Source: L. 91: Entire part added, p. 1448, § 9, effective May 31. L. 2006: (1) amended, p. 381, § 13, effective July 1.
ANNOTATION
Subsection (2) does not allow a party to bring a new action for reformation after a judicial determination that a property interest violated the common law rule against perpetuities. The statute does not authorize a party to file a second lawsuit, because there is no evidence of the general assembly's intent to create an exception to the doctrine of claim preclusion. Argus Real Estate, Inc. v. E-470 Pub. Hwy. Auth., 109 P.3d 604 (Colo. 2005).