Rule Against Perpetutities

Question 1

At common law, what is the rule against perpetuities?

Answer 1

Under the common law, a future interest, MUST vest within 21 years of the death of a living person (measurable life). If there is ANY possibility that the future interest will not vest within this time period, the interest will be invalidated.

Question 2

What is the wait and see rule as it pertains to the rule against perpetuities?

Answer 2

In many jurisdictions, courts will “wait and see” if the future interest actually does fail to vest within 21 years after the death of a life in being, rather than invalidating the interest for any possibility that it will fail to vest within the time period.

Question 3

What is the Modern Trend as it pertains to the rule against perpetuities?

Answer 3

Under a modern trend, some court will reduce age contingencies exceeding 21 years to validate a conveyance that otherwise violates the common law rule against perpetuities.

For example: O conveys Greenacre to A for life, then to A’s children who reach the age of 30. This conveyance would be invalidated under the common law, because their is a possibility that the interest would not vest within 21 years after A’s death. However, the modern trend allows court to rewrite the conveyance to: O conveys Greenacre to A for life, then to A’s children who reach the age of 21.