RULE AGAINST PERPETUITIES

rule against perpetuities.(sometimes cap.) Property. The common-law rule prohibiting a grant

of an estate unless the interest must vest, if at all, no later than 21 years (plus a period of gestation

to cover a posthumous birth) after the death of some person alive when the interest was created. •

The purpose of the rule was to limit the time that title to property could be suspended out of

commerce because there was no owner who had title to the property and who could sell it or

exercise other aspects of ownership. If the terms of the contract or gift exceeded the time limits of

the rule, the gift or transaction was void. See MEASURING LIFE. Cf. ACCUMULATIONS,

RULE AGAINST . [Cases: Perpetuities 4. C.J.S. Perpetuities §§ 2, 12.]

“The true form of the Rule against Perpetuities is believed to be this: — NO INTEREST

SUBJECT TO A CONDITION PRECEDENT IS GOOD, UNLESS THE CONDITION MUST BE

FULFILLED, IF AT ALL, WITHIN TWENTY-ONE YEARS AFTER SOME LIFE IN BEING AT

THE CREATION OF THE INTEREST. ” John Chipman Gray, The Rule Against Perpetuities 144

(1886).

“Another scholar who spent a substantial part of an academic lifetime attempting to bring

order and add sense to the rule [against perpetuities], W. Barton Leach, described the rule as a

‘technicality-ridden legal nightmare’ and a ‘dangerous instrumentality in the hands of most

members of the bar.’ ” Thomas F. Bergin & Paul G. Haskell, Preface to Estates in Land and Future

Interests 178 (2d ed. 1984) (quoting Leach, Perpetuities Legislation, Massachusetts Style, 67 Harv.

L. Rev. 1349 (1954)).

“The Rule Against Perpetuities is a rule against remoteness of vesting. A contingent future

interest is invalid under the orthodox rule if, at the time of the creation of the interest, the

circumstances are such that the contingency may go unresolved for too long a time. The Rule is

not concerned with the duration of interests, that is, the length of time that they endure. It is not a

rule against suspension of the power of alienation, nor a rule against restraints on alienation. It is

not a rule that directly limits the duration of trusts …. The orthodox rule is satisfied if all

contingent future interests are so created that they must vest, if they vest at all, within the

perpetuities period.” Robert J. Lynn, The Modern Rule Against Perpetuities 9 (1966).

“The common law Rule Against Perpetuities (modified by statute in some states) provides

that no interest is valid unless it must vest within 21 years after lives in being when the interest

was created. The rule is something of a misnomer. It does not limit the duration of a condition in a

bequest, but rather limits the testator’s power to earmark gifts for remote descendants.” Richard A.

Posner, Economic Analysis of Law § 18.7, at 394 (2d ed. 1977). [Blacks Law 8th]