After abolishing the Rule Against Perpetuities
, one of the crucial pieces of modern trust law that South Dakota codified was the directed trust.
The foregoing provision also shall apply to a trust created by the exercise of a power of appointment conferred by this Agreement unless the exercise expressly begins a new Rule Against Perpetuities
or similar rule that limits the time that property may remain in trust.
Many states limit the duration of trusts to a period of time, generally around 100 years, through their rule against perpetuities
The rule against perpetuities
is a state law restriction designed to limit the period during which a trust can withhold property or its income from outright ownership.
The common law version of the rule against perpetuities
generally provides that interests in property must vest no later than a life in being plus 21 years (plus a gestation period, if necessary).
abolish the Rule Against Perpetuities
, the pertinent features of the
1881) (noting that the English common law, including the "great" rule against perpetuities
, was adopted by the California Legislature in 1850, thus becoming a part of that state's common law).
4) Florida extended the "wait and see" period set forth in its version of the Uniform Statutory Rule Against Perpetuities
("USRAP") from 90 years to 360 years, (5) and Washington extended this period to 150 years.
75) In particular, changes have occurred recently in such diverse areas as principal and income, the rule against perpetuities
, self-settled spendthrift trusts, reformation of the trust to achieve the settlor's tax goals, and revocation of an inter vivos trust by will.
The act effectively eliminates the long-standing rule against perpetuities
The Rule Against Perpetuities
applies only to contingent interests, not to vested remainders.
Tracey McCartney, e-mail: I am a second-year law student, and I still don't understand the rule against perpetuities