RAP to Die in Pennsylvania

The following post is reproduced from the Property Prof Blog edited by Prof. Ben Barrios:

Last week, Pennsylvania enacted legislation that among other things abolishes the rule against perpetuities for interests created after December 31, 2006 (the link is to the Senate bill; the Governor approved the bill on July 7).  The legislation amends several code sections, but the following captures the essence of the bill:

20 PSA  § 6107.1.  Applicability of rule against perpetuities.
    (a)  Traditional rule.--Sections 6104 (relating to rule against perpetuities), 6105 (relating to rule against perpetuities; disposition when invalidity occurs), 6106 (relating to income accumulations; when valid) and 6107 (relating to income accumulations; disposition when invalidity occurs):
         (1)  shall apply to every interest created before January 1, 2007; but shall not apply to any interest created after December 31, 2006.
   (b)  Modern rule.--All of the following apply to every interest created after December 31, 2006:
        (1)  No interest shall be void as a perpetuity.
        (2)  No direction or authorization to accumulated income shall be void as a perpetuity.

As a result, Pennsylvania will retain its wait-and-see approach to the RAP for interests created before January 1, 2007, but will have no RAP for interests created January 1, 2007 or after.