United States Rule Against Perpetuities
In the United States the Rule Against Perpetuities, where it is in effect, applies to both legal and equitable interests, created in trust. The Rule Against Perpetuities varies from state to state. The common law rule may be stated, "No interest is good unless it must vest, if at all, not later than twenty-one years after some life in being at the date of the creation of the interest." Vesting indicates a right to an interest in the trust. The rule is directed entirely against remoteness in vesting. An identification of the person whose interest is defined by the trust, must either vest or fail in s specified time. Any interest which may remain contingent beyond the period of the rule is invalid. A beneficiary must be an identifiable person born within the time span of the trust, and vest in it. All interests in a charitable trust, are subject to the rule with a few exceptions. A charitable trust which gives a gift from the first charity to a second charity on a condition precedent is not void by reason of the fact tha the condition may not occur without the period of the Rule. (See Example 2 below.) Property transferred from a non-charity and then left over to a second charity on a remote contingency is void. (See Example 3 below.)
Read more about this topic: Cestui Que
Famous quotes containing the words united states, united, states and/or rule:
“I incline to think that the people will not now sustain the policy of upholding a State Government against a rival government, by the use of the forces of the United States. If this leads to the overthrow of the de jure government in a State, the de facto government must be recognized.”
—Rutherford Birchard Hayes (1822–1893)
“A sincere and steadfast co-operation in promoting such a reconstruction of our political system as would provide for the permanent liberty and happiness of the United States.”
—James Madison (1751–1836)
“We cannot feel strongly toward the totally unlike because it is unimaginable, unrealizable; nor yet toward the wholly like because it is stale—identity must always be dull company. The power of other natures over us lies in a stimulating difference which causes excitement and opens communication, in ideas similar to our own but not identical, in states of mind attainable but not actual.”
—Charles Horton Cooley (1864–1929)
“Every writing career starts as a personal quest for sainthood, for self-betterment. Sooner or later, and as a rule quite soon, a man discovers that his pen accomplishes a lot more than his soul.”
—Joseph Brodsky (b. 1940)