Validating life in rule against perpetuities pros cons consolidating bills
The rule includes the period of gestation to cover cases of posthumous birth.
A property interest vests when it is given to a person in being (someone who is currently living) and is not subject to a condition precedent.
Unfortunately, the Rule Against Perpetuities is also quite complicated.
We will try to break it down into terms that are as simple as possible.
Under the Common Law, the principle that no interest in property is valid unless it vests not later than twenty-one years, plus the period of gestation, after some life or lives in being which exist at the time of the creation of the interest.
The courts developed the rule during the seventeenth century in order to restrict a person's power to control perpetually the ownership and possession of his or her property after death and to ensure the transferability of property.
If Donald transfers his property to his son Howard for life, and then to Howard's children Ann and Richard, the children's interest is vested.
Although the children's right to possess and enjoy the property might be delayed for many years, the rule does not relate to the time when property vests in actual possession but only when the property vests in interest.
Although this rule’s ramifications are most significant when it comes to drafting trusts (which will be a major subject in the course on Wills, Trusts and Estates), we will discuss it in this section because it developed as a property rule.However, when property has future interests attached to it, the current possessor cannot dispose of it, since the property goes to someone else already designated, either by identification or by a contingency, sometime in the future.Only an owner with fee simple absolute title is free to dispose of her property—hence, the Rule's requirement that someone gain fee simple title or absolute ownership of the property within the perpetuities period.The law is applied differently or not at all, and even contravened, in various jurisdictions and circumstances.Stated more formally, the common law rule against perpetuities forbids some future interests (traditionally contingent remainders and executory interests) that may not vest within the time permitted; the rule "limits the ability of a decedent to exercise dead hand control over property, which the state wishes to be alienable.