rule against perpetuities

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Rule Against Perpetuities

The legal concept forbidding a testator from leaving portions of his/her estate unvested in a beneficiary after a certain number of years. The rule against perpetuities disallows an estate from holding back certain assets for descendents who will not be born for several generations. While it is part of the common law, not all jurisdictions have a rule against perpetuities. Among those that do have it, the rule begins to apply between 20 and 90 years after a person's death. See also: Rule against accumulations.

rule against perpetuities

See perpetuity.

References in periodicals archive ?
Until the recent movement to abolish the Rule Against Perpetuities,
Wisconsin had already abolished the Rule Against Perpetuities before
Delaware's repeal of the rule against perpetuities for personal
In addition to efficiency, the rule against perpetuities purports to accomplish "intergenerational equity.
109) Other states, adopting provisions such as the Uniform Statutory Rule Against Perpetuities, have sought to eliminate the remaining unjustifiable and unfathomable complexities of the rule.
These include the Q-TIP marital deduction trust, which accomplishes the deferral of tax until the surviving spouse dies, but without requiring the testator to surrender control over the choice of the ultimate takers; the Crummey trust, which allows for the benefit of the present interest gift tax annual exclusion even though the property is transferred to a trust for control purposes, rather than directly to the donees for their present enjoyment; and the Alaska self-settled trust, which may allow for discretionary distributions to the settlor without inclusion in his gross estate, the defeat of out-of-state creditors, and the elimination of the rule against perpetuities in a manner that enhances the benefit to be derived from the federal GST exemption.
Florida has now changed its rule against perpetuities period to 360 years, which is viewed by some as equivalent to having no rule.
83) We may come to look back to these times and recognize that we are looking at a period of time when there was great change in the nature of the trust, especially as to spendthrift rules and the Rule against Perpetuities.
129) The Rule against Perpetuities will affect legal interests as well as equitable interests, but the vast majority of interests affected by the Rule are equitable interests created under trusts.
2) unanimously concluded that a preemptive right in the form of a right of first refusal in a commercial or governmental transaction is exempt from the Rule against Perpetuities (Rule) as embodied in New York Estates Powers and Trusts Law (EPTL) section 9-1.
18) This statutory section "seeks to avoid annulling dispositions due to inadvertent violations of the Rule Against Perpetuities.
The common law rule against perpetuities (which limits the life of a trust) is often repealed by these jurisdictions.