What is the rule against perpetuities?

The rule against perpetuities is a legal doctrine that prevents people from having an interest in property that would extend beyond a certain amount of time. It’s a long-standing principle of property law in California and in other states. The rule originated in England in the late 1600s and states that a person’s interests in property can’t last more than 21 years after the death of an individual. This means that if a person creates a trust fund for someone that is set to last more than 21 years after the person’s death, the trust fund would be invalid. The general purpose of this rule is to prevent people from tying up their property for an indefinite period of time. In California, the specific language of the rule against perpetuities states that “no interest of whatever kind shall be good unless it must vest, if at all, not later than twenty-one years after some life or lives in being at the creation of the interest.” This means that any interest in property must vest within 21 years to be valid. The rule against perpetuities is important to understand when dealing with real estate transactions, estate planning, and other property matters. It prevents people from transferring property in a way that would keep it in the hands of the same owners or families for generations, thus allowing for the effective transition of property to new generations down the line.

Related FAQs

What is a negative servitude?
What is an equitable servitude?
What is a subordination agreement?
Who owns a property when it is jointly owned?
What are the various types of restrictive covenants?
What is a deed of cross-conveyance?
What are the elements of a valid deed?
What is a deed of gift?
What is the difference between a license and an easement?
What is the doctrine of fixtures?

What is the rule against perpetuities?

Related FAQs

Related Blog Posts