CHAPTER 224 - EMPLOYERS AND EMPLOYEES RULE AGAINST PERPETUITIES NOT TO APPLY TO TRUST FOR EMPLOYEES

AN ACT PROVIDING THAT THE RULE AGAINST PERPETUITIES SHALL NOT APPLY TO ANY TRUST FOR EMPLOYEES.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. Trust for Employees; Effect of Rule Against Perpetuities On:--A trust of personal property, created by an employer as part of a stock bonus plan, pension plan, disability or death benefit plan, or profit-sharing plan, for the exclusive benefit of some or all of his employees, to which contributions are made by such employer or employees, or both, for the purpose of distributing to such employees the earnings or the principal, or both earnings and principal, of the fund so held in trust, shall not be deemed to be invalid as violating the rule against perpetuities or any rule against suspension of the power of alienation of title to property; but such a trust may continue for such time as may be necessary to accomplish the purposes for which it may be created.

Approved March 29, 1945.