Navigating the Rule Against Perpetuities

The rule against perpetuities allows individuals preparing wills to have control over their assets even after they pass on. There are limits to these powers, however. A person can restrict property from being sold or make sure that it is used for a certain purpose. Property can be passed on to family members as long as it is done on the condition that an individual maintains certain requirements or behaviors. The time limit on the ability to pass on assets is referred to as the rule against perpetuities.  Complex and often confusing, the rule of perpetuities can be utilized at the time of the passing of a testator or heirs. Heirs are classified as “lives in being.” This means that if a child is conceived but not born at the time of the creator’s death, the child will be classified as a life in being. After the last living heir named in a will passes away, the restrictions on property continue in place as desired for a certain period. The idea is that the creator can control his or her assets for a full generation after death. If the rule applies, however, the conditions on the bequest are abandoned and [...]