Clauses taking effect upon the later of certain occurrences; portion invalid; construction

Sec. 5. (a) This section applies to a clause in a governing instrument that: (1) purports to: (A) postpone the vesting or termination of any interest or trust until; (B) disallow the vesting or termination of any interest or trust beyond; (C) require all interests or trusts to vest or terminate not later than; or (D) operate in any similar fashion upon; the occurrence of an event described in subdivision (2); and (2) takes effect upon the later of the following occurrences: (A) The expiration of a period that exceeds twenty-one (21) years or that might exceed twenty-one (21) years after the death of the survivor of lives in being at the creation of the trust or other property arrangement. (B) The death of, or the expiration of a period not exceeding twenty-one (21) years after the death of, the survivor of specified lives in being at the creation of the trust or other property arrangement. (b) If a clause described in subsection (a) appears in an instrument creating a trust or other property arrangement, then, in measuring a period from the creation of a trust or other property arrangement, the portion of the clause that pertains to the period that exceeds twenty-one (21) years or that might exceed twenty-one (21) years after the death of the survivor of lives in being at the creation of the trust or other property arrangement is not valid. The court shall construe the clause as becoming effective upon: (1) the death of; or (2) the expiration of the period not exceeding twenty-one (21) years after the death of; the survivor of the specified lives in being at the creation of the trust or other property arrangement.