rule against perpetuities
The 'rule against perpetuities' is a legal principle that ensures property interests do not remain unresolved for an indefinite period, originating from 17th-century English law.
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Definition
C2Property Law
(technical, legal)A principle that restricts the duration for which property can be controlled after its transfer, ensuring it vests within 21 years after the death of a person alive at the time of the transfer.
Example
- The rule against perpetuities ensures that property interests are not tied up indefinitely by the terms of a will.
- Lawyers must consider the rule against perpetuities when drafting estate plans to ensure compliance.
C2Estate Planning
(technical, legal)A regulation preventing property owners from imposing long-term restrictions on the transfer of their property, thereby promoting free marketability.
Example
- To avoid complications with the rule against perpetuities, the trust was designed to vest within the legal time frame.
- Understanding the rule against perpetuities is crucial for drafting effective estate plans.
Similar
Terms that have similar or relatively close meanings to "rule against perpetuities":