This can be seen most dramatically in the major exception to the rule that options are subject to the Rule against Perpetuities. That exception exempts options held by a lessee in leased property.(72) In the eyes of the law, these options -- known as options appendant or options appurtenant -- encourage the lessee/option-holder to invest in and develop the property by guaranteeing that that investment will, if the lessee desires, inure to its ultimate benefit.(73) Nonetheless, unquestionably, options appurtenant or appendant render property inalienable in essentially the same manner as options in gross.
Careful drafting can create a perpetuities period of a century(76) and, where options do seriously interfere with alienability and productivity, that ought to be too long.
While the policies behind the Rule against Perpetuities arguably are not served by subjecting options to the Rule, other policies, more familiar to the law of commercial transactions, are decidedly disserved.
First, they may, as does the Uniform Statutory Rule against Perpetuities (USRAP),(79) simply exclude non-donative transfers from the scope of the Rule altogether.
|V.sub.OE~(|Delta~) = the value of the option to switch from old exempt to taxable perpetuities, given that the insurer holds old exempts,
Claim 2: An insurer holding old, tax-favored exempt perpetuities should sell them and purchase taxables when |Delta~ = |Delta~*, |Delta~* |is less than~ 0 and satisfying the equation
Remark 4.9 If X is bounded and bounds for the density fx and its modulus of continuity are known explicitly, the last result is strong enough to allow, in principle, perfect simulation using von Neumann's rejection method; see Devroye (2001) for the case of infinitely divisible perpetuities with approximation of densities by Fourier inversion, Devroye, Fill, and Neininger (2000) for the case of the Quicksort limit distribution and Devroye and Neininger (2002) for more general fixed-point equations of type (2).
On distributional properties of perpetuities. Preprint, 2007.
which in the 1990s was tasked to make recommendations on perpetuities
Rule Against Perpetuities, federal wealth transfer taxes, and state
Perpetuities. Successful implementation of federal tax policy
Joint Committee on Taxation proposed closing the perpetuities