Rule Against Perpetuities

The Rule Against Perpetuities is a complex legal principle that limits the duration of certain types of future interests in property. It has been subject to various interpretations and exceptions in different jurisdictions, and its application may change circumstantially. 

In essence, the Rule Against Perpetuities says that a future interest in property is only valid if it must vest, if at all, within a certain period of time after the creation of the interest. This period is typically defined as “lives in being plus 21 years,” meaning that the interest must vest within the lifetime of individuals who are alive at the time the interest is created, plus an additional 21 years. 

For example, let’s say a property owner grants a future interest in their property to their grandchildren when the grandchildren reach the age of 30. If the grandchildren are not yet born, the interest must vest within the lifetimes of the property owner and the grandchildren plus an additional 21 years. If the interest fails to vest within that amount of time, the Rule Against Perpetuities has been violated and the interest is considered void.