sec.205Exclusion of class members to ensure disposition within perpetuity period

### sec.205 Exclusion of class members to ensure disposition within perpetuity period This section applies to a disposition of property under a trust if— the terms of the trust state or imply a mechanism for determining the day on which the trust property will vest in a class of persons; and the inclusion of potential members of the class or of unborn persons who at birth would become members or potential members of the class (both non-qualifying members ) would cause the disposition to be invalid under section 202 ; and the application of section 204 would not cause the disposition to be valid under section 202 . The non-qualifying members are taken to be excluded from the class to the extent necessary to cause the disposition to be valid under section 202 . However, a non-qualifying member is not excluded under subsection (2) if the member’s exclusion would exhaust the class. This section does not affect the validity of anything done in relation to the trust property before the disposition, including, for example, by way of advancement or application of intermediate income. In this section— member , of a class, means a person who satisfies all the conditions for being a member of the class. potential member , of a class, means a person who— satisfies 1 or more of the conditions for being a member of the class; and may in time satisfy all the conditions for being a member of the class. (sec.205-ssec.1) This section applies to a disposition of property under a trust if— the terms of the trust state or imply a mechanism for determining the day on which the trust property will vest in a class of persons; and the inclusion of potential members of the class or of unborn persons who at birth would become members or potential members of the class (both non-qualifying members ) would cause the disposition to be invalid under section 202 ; and the application of section 204 would not cause the disposition to be valid under section 202 . (sec.205-ssec.2) The non-qualifying members are taken to be excluded from the class to the extent necessary to cause the disposition to be valid under section 202 . (sec.205-ssec.3) However, a non-qualifying member is not excluded under subsection (2) if the member’s exclusion would exhaust the class. (sec.205-ssec.4) This section does not affect the validity of anything done in relation to the trust property before the disposition, including, for example, by way of advancement or application of intermediate income. (sec.205-ssec.5) In this section— member , of a class, means a person who satisfies all the conditions for being a member of the class. potential member , of a class, means a person who— satisfies 1 or more of the conditions for being a member of the class; and may in time satisfy all the conditions for being a member of the class. - (a) the terms of the trust state or imply a mechanism for determining the day on which the trust property will vest in a class of persons; and - (b) the inclusion of potential members of the class or of unborn persons who at birth would become members or potential members of the class (both non-qualifying members ) would cause the disposition to be invalid under section 202 ; and - (c) the application of section 204 would not cause the disposition to be valid under section 202 . - (a) satisfies 1 or more of the conditions for being a member of the class; and - (b) may in time satisfy all the conditions for being a member of the class.