Exceptions to applicability of article

Code Section 44-6-201 shall 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; 756 44-6-205 (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. Nothing contained in paragraphs (2) and (3) of this Code section and this paragraph shall be construed to permit the fiduciary to continue the administration or management of assets once the nonvested property interest becomes invalid as described in subsection (a) of Code Section 44-6-201; (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; or (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. (Code 1981, § 44-6-204, enacted by Ga. L. 1990, p. 1837, § 2.) 44-6-205. Applicability of article; court reform of nonvested dispositions created before article became effective. (a) Except as extended by subsection (b) of this Code section, this article applies to a nonvested property interest or a power of appointment that is 757 44-6-206 created on or after May 1, 1990. For purposes of this Code section only, 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. (b) With respect to a nonvested property interest or a power of appointment that was created before May 1, 1990, and that violates this state’s rule against perpetuities as that rule existed before May 1, 1990, a court upon the petition of an interested party may exercise its equitable power to reform the disposition in the manner that most closely approximates the transferor’s manifested plan of distribution and is within the limits of the rule against perpetuities applicable when the nonvested property interest or power of appointment was created. (Code 1981, § 44-6-205, enacted by Ga. L. 1990, p. 1837, § 2.)