What is the Rule Against Perpetuities, and what impact does it have on future property interests?

• A. It limits the duration to vesting within a life in being plus 21 years.
• B. It prohibits all future interests in property.
• C. It requires all property interests to vest within 100 years.
• D. It allows unlimited duration for property interests.

Answer: (A)

The Rule Against Perpetuities ensures that future property interests cannot be put off for too long; any such interest must vest within a period that ends no later than a life in being at the time of the conveyance plus 21 years. In other words, if there’s any possibility that a contingent interest could vest after that window, it is void from the start. This keeps property from being tied up indefinitely and preserves transferability across generations. The rule applies to things like contingent remainders and executory interests (and other future interests that depend on events not yet certain at the time of grant). It doesn’t ban future interests entirely; it just restricts their duration so vesting is guaranteed within the specified timeframe. For example, a grant trying to trigger a gift to “the first child of B who reaches 25” could violate the rule if that event could occur long after the holder’s life ends, but a grant that vests within a life in being plus 21 years would stay valid. Modern practice sometimes uses a wait-and-see approach, but the core idea remains that vesting must occur within the measured time.