Concept of Rule against Perpetuity
The rule against perpetuity is a legal concept that is designed to limit the duration of property interests in certain types of property transactions, such as trusts and wills.
The basic idea behind the rule is to ensure that property is not tied up indefinitely and that future generations are not burdened by the actions of previous generations.
Under the rule against perpetuity, any property interest that is created must vest within a certain period of time after the interest is created. This time period is usually set at 21 years after the death of a person alive at the time the interest is created, although some jurisdictions may have different time frames. If the interest does not vest within this time period, it is considered void.
Purpose of the Rule against Perpetuity
The purpose of the rule against perpetuity is to prevent the creation of interests in property that could potentially last for generations, tying up the property and preventing it from being used by future generations.
Example: Without the rule, a person could create a trust that is designed to last for hundreds of years, preventing the beneficiaries from using the property for their own purposes.
By limiting the duration of property interests, the rule against perpetuity ensures that property is used in ways that are beneficial to all generations, both present and future.
It also helps to prevent disputes and confusion over property ownership that can arise when property interests are unclear or indefinite.
