RULE AGAINST PERPETUITIES
Back to GlossaryDefinition
A common law rule which requires that all interests in a trust must vest within 21 years after the lifetimes of those living when the interest was created.
Summary
The Rule Against Perpetuities is a legal principle that prevents property interests from being tied up indefinitely. Think of it as a 'time limit' rule that says any future interest in property (like in a trust or will) must become certain (vest) within a specific timeframe: the lifetime of any person alive when the interest was created, plus 21 years. This rule exists to prevent property from being controlled by 'dead hands' - meaning previous generations shouldn't be able to control property forever and restrict its free transfer in the marketplace.
Usage Context
This term is crucial when studying trust and estate law, future interests in property, and will drafting. Students encounter it when learning about property law limitations, estate planning strategies, and why certain property arrangements are legally invalid. It's particularly important for understanding why lawyers must be careful when drafting long-term trusts and estate plans.
Common Confusions
- Confusing the 21-year period as starting from when the document is written rather than from the death of the measuring life
- Thinking the rule applies to all property arrangements rather than just future interests
- Misunderstanding what 'vest' means - students often confuse vesting with actual possession
- Believing the rule invalidates entire trusts rather than just the offending provisions
- Mixing up the Rule Against Perpetuities with the Rule Against Accumulations
