What is the perpetuity period?
In Indiana, the perpetuity period is the period of time in which a trust, or testamentary disposition, is allowed to last. This is also commonly referred to as the Rule Against Perpetuities. Under Indiana law, the perpetuity period for a trust is limited to 21 years after the death of the person who sets up the trust or makes the testamentary disposition. This means that the trust must terminate and all assets must be distributed within 21 years of that individual’s death. However, the Rule Against Perpetuities has certain exceptions. For example, if the trust creator specifies a longer period of time in the trust document, the trust may be allowed to continue beyond the 21-year period. Additionally, if a trust has an ongoing charitable purpose it may be allowed to go beyond the 21-year period. It is important to note that Indiana has certain laws in place to ensure that trust creators do not abuse the perpetuity period. For example, any trust that is not in compliance with state laws and exceeds the 21-year perpetuity period may be subject to legal action. It is important to consult with an experienced attorney to ensure that all laws and regulations are being followed.
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