Saving a Trust Provision Instead of Destroying It
Under older perpetuities rules, a trust provision that violated the time limit was simply invalid. The property interest failed, and the creator's intent was lost. Arizona takes a more practical approach. Rather than voiding the provision entirely, the statute allows a court to reform it.
On 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 that is within the five hundred years allowed under section 14-2901.
A.R.S. § 14-2903The key phrase is "most closely approximates." The court does not rewrite the trust from scratch. It preserves the creator's plan as much as possible while trimming whatever falls outside the legal time limits. This approach respects both the rule and the person who created the arrangement.
When Reformation Applies
The court can step in under three circumstances. First, when a nonvested property interest or power of appointment has already become invalid under the rule. Second, when a class gift has not yet violated the rule but might, and the time has come for some class members to receive their shares. Third, when an interest that does not meet the traditional "lives plus 21 years" test could eventually vest, but not within 90 years.
This third trigger is a practical safety net. If a trust provision could vest but would take longer than 90 years to do so, the court can reform it now rather than waiting to see if it fails. For families with complex multi-generational trusts, this means the court can step in early to preserve the arrangement rather than letting it collapse decades later.
