Rule Against Perpetuities

Plain English

The Rule Against Perpetuities is an old legal principle that says a trust generally cannot last longer than 21 years after the death of someone alive when the trust was created. The idea is to prevent dead people from controlling property forever and to keep land and wealth in circulation. Some states have abolished this rule or created special exceptions, particularly for certain types of trusts, but it remains important in many jurisdictions.

Example

A grandfather creates a trust that says his property should go to his children, then grandchildren, then great-grandchildren, and so on forever. Most states would say this violates the Rule Against Perpetuities because it tries to control property beyond the allowed time period.

Used in a sentence

“The estate attorney restructured the trust to comply with the Rule Against Perpetuities and avoid invalidating the family's long-term wealth plan.”

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