What is the wait and see rule against perpetuities?

The rule against perpetuities means that no future interest in property can lawfully be created which does not necessarily vest within twenty-one years after some life or lives presently in being, excluding from such computation of years the incipient life of infants, in the womb of the mother.

What is wait and see rule?

The “wait and see” principle means that the rule against perpetuities does affect an estate or interest in property unless and until it becomes certain that the estate or interest will not vest within the perpetuity period.

Does the rule against perpetuities still exist?

The common law Rule against Perpetuities is English in origin and was first promulgated centuries ago. The modern version of the Rule has been altered in California by statute. California has enacted the Uniform Statutory Rule Against Perpetuities, which supersedes the old common law rule.

How long is perpetuity?

A perpetuity is a type of annuity that lasts forever, into perpetuity. The stream of cash flows continues for an infinite amount of time.

What is subject to the rule against perpetuities?

Simply stated, the Rule Against Perpetuities states that certain interests in property must vest, if at all, within 21 years after the death of a life in being at the time that the interest was created.

What states still have the rule against perpetuities?

Summary of 50 State Rule Against Perpetuities Laws

State Citation
Alaska AK ST §34.27.100 AK ST §34.27.051
Arizona ARS §33-261 ARS §14-2901(A)(3)
Arkansas A.C.A. § 18-3-101
California Cal. Prob. Code §21200

What is the uniform statutory rule against perpetuities?

The Uniform Statutory Rule Against Perpetuities (USRAP) invalidates interests in property that are intended to belong to somebody at a future time, but for which the actual determination of ownership cannot or will not be accomplished within a specific period of time.

What happens when the rule against perpetuities is violated?

Under the cy près doctrine, if the interest does violate the rule against perpetuities, the court may reform the grant in a way that does not violate the rule and reduce any offensive age contingency to 21 years.

What happens when the perpetuity period ends?

Under the common-law rule, if there is a possibility that the future interest will not vest until after the expiration of the life or lives in being, plus twenty-one years, the interest is void. The determination is made at the time the future interest is created.

Is it in perpetuity or for perpetuity?

If something is done in perpetuity, it is intended to last for ever. The U.S. government gave the land to the tribe in perpetuity.

What is the rule against perpetuities in Tennessee?

At common law, the rule against perpetuities provided that: No [nonvested property] interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest.

What is the rule against perpetuities in the law?

Section 4 (1) of the Perpetuities Act establishes a “wait and see” approach to determining if a gift offends the rule against perpetuities.

When do you have to wait and see for a perpetuity?

Rather, you must “wait and see” if the triggering event (i.e. the charity ceasing to use the property) occurs during the perpetuity period (i.e. the lifetime plus twenty one years of the descendant in question).

What is the life span of a perpetuity?

The “perpetuity period” in this instance would be the lifetime of one of the deceased’s descendants alive on the deceased’s death who ultimately lives the longest after the deceased’s death (likely the youngest descendant alive upon the deceased’s death, although not necessarily) plus twenty one years after such a descendant’s death.